The European Bank for Reconstruction and Development (EBRD) is providing a US$ 30 million financing package to one of the leading agro-holdings in Ukraine, Astarta, supporting it to weather the adverse conditions caused by Russia’s war on Ukraine and make its operations more sustainable. Читати українською

The package consists of a US$ 21 million loan from the EBRD and a US$ 9 million sustainability-linked loan funded by the Clean Technology Fund (CTF).

The EBRD, which has significantly accelerated its lending to Ukraine since the Russian invasion in February 2022, has committed to invest €3 billion there in 2022-23. Food security is one of its five priority investment areas, along with energy security, vital infrastructure, trade finance and support for the private sector.

Astarta plans to use the finance for modernisation and energy efficiency improvements at existing production facilities, introduction of climate smart agricultural practices to increase business resilience, decreasing production and energy costs while increasing productivity and operational efficiency, and securing sufficient working capital financing to sustain its operations at pre-war levels.

Funding the holding’s capex plan will help Astarta develop further its farming, soybean processing and sugar production activities during a time of war-related instability. The liquidity support provided through this loan will help sustain operations and maintain production and export volumes essential for food security, while supporting the livelihoods of nearly 7,000 workers across Astarta alongside those of supply-chain partners.