Kyiv, Ukraine, April 3, 2017
— IFC, a member of the World Bank Group, is providing a $37 million loan to MV Cargo to support the construction of a new grain terminal at the Black Sea port of Yuzhny, helping Ukraine to boost its agricultural exports and contribute to global food security.
IFC’s financing will allow the company to build a state-of-the-art terminal capable of handling up to 5 million tons of grain annually. Other partners in the project include Cargill and the European Bank for Reconstruction and Development. The total project costs are estimated at about $150 million.
Ukraine is already one of the world’s leading grain exporters and the terminal is expected to support the continued development of the country's farming sector. Agribusiness is a key driver of the national economy, accounting for about 20 percent of gross domestic product and around 40 percent of total exports.
“We have already started the construction works at the Yuzhny port. Our plan is to have the new grain terminal operational by spring 2018,” said Andrii Stavnitzer, co-owner of MV Cargo. “The works include the development of rail infrastructure and dredging works. The deep water port capacities are essential to boost Ukrainian grain exports further. Actually, it is one of the largest recent investments in Ukraine.”
Elena Voloshina, IFC’s acting country manager for Ukraine and Belarus, said, “This project is key to helping Ukraine improve its export competitiveness, support foreign currency inflows, and reduce logistics costs for exporters. It is also a part of IFC’s broader work to help Ukraine realize the potential of its agribusiness sector.”
IFC is a leading investor in Ukraine’s farming industry and has committed about $845 million in the last six years to support projects throughout the sector. IFC also offers advisory programs in Ukraine focused on simplifying regulations for agribusiness, expanding access to finance for farmers, encouraging commercial bank lending to the sector, and developing the agri-insurance market. IFC also works to enhance the competitiveness of local players by supporting improvements in food safety management and resource efficiency.
About MV Cargo
MV Cargo is a Ukrainian company set up to implement the grain terminal project at the Black Sea port of Yuzhny, near Odessa. By March 2017, the project was 40 percent complete and had received over $30 million in investments.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit