Nibulon, one of Ukraine’s largest grain production and trading companies, will receive a 71 million euros loan to help improve its infrastructure as part of a 600 million euros loan package announced by the European Investment Bank (EIB) on December 19.
The financing will foster a multi-scheme investment at Nibulon focused on creating a more sustainable, modern and expanded system for grain storage and transportation. The investments will have a positive impact on the environment by substituting road transportation with river transportation through a countrywide network of river terminals and river transportation equipment, EIB said.
EIB said supporting the development of the private sector was a key objective in its actions in Ukraine. The support to private companies is aimed at creating jobs and improving the standard of living of Ukrainian households.
The EIB also pledged 150 million euros for electrification and modernization of 253 km of railway lines in the southern region of Ukraine (from Dolynska to Mykolaiv and from Mykolaiv to Kolosivka). This will help eliminate existing bottlenecks and improve connections toward the Ukrainian ports on the Black Sea.
The EIB had committed to providing a 3 billion euros financial assistance program to Ukraine between 2014-2016 to support the nation and strengthen its competitiveness, resilience, energy security and improve the quality of life for Ukrainian citizens.
The loans, which are partly underpinned by E.U. grants, will provide funding for energy efficiency, higher education, sustainable transport, private sector and business support and have been signed by the vice-president of the EIB Vazil Hudak in the presence of the vice-president of the European Commission responsible for Energy Union Maros Sefcovic and the director-general for European Neighborhood Policy and Enlargement Negotiations at the European Commission Christian Danielsson.
In addition, Ukraine and the European Investment Bank also signed a Memorandum of Understanding to underline the importance of future support beyond 2016 and to set out areas for possible future cooperation between Ukraine and the Bank.
“Our commitment to support Ukraine is cast iron and enduring”, Hudak said. “In 2014 the EU committed to an ambitious financing program to support Ukraine at a time of crisis and daunting challenges to the country. The EIB Group committed to providing 3 of those 11 billion euros. Today we have met that target”. (World Grain/Business World Magazine)