July 3, 2012

Ukraine, China sign agreement on Ukraine's agricultural development

A memorandum of cooperation, allowing Ukraine to raise US$3 billion for its agricultural development, has been signed on June 28, 2012 between the Agricultural Policy and Food Ministry of Ukraine and the Export-Import Bank of China, the press service of the ministry reported on July 2.

The agreements detailed in the document allow Ukraine to initiate further negotiations on the allocation of loans for concrete projects, the details of which will be discussed further.

"The signing of the memo on the allocation of US$3 billion for the development of the agricultural sector of our country is a natural interim decision as a part of cooperation and agreements between the heads of our countries," reads the report, citing Agricultural Policy and Food Minister of Ukraine Mykola Prysiazhniuk.

He said he hoped that after the sides agree all of the details, the process will proceed quickly. He said that Ukraine is obliged to supply high-quality products to China.

The minister said he was convinced that the financing provided by China will help improve and increase the food trade, and will promote new investment in Ukraine's agricultural sector, which will expand output, improve the financial opportunities of farmers in Ukraine and aid in the technical re-equipment of farms.

As reported, the National Bank of Ukraine and the People's Bank of China on June 26, 2012 signed an agreement on currency swaps worth CNY15 billion (US$2.4 billion). Under the agreement, the sum of supply of Ukrainian currency is UAH19 billion (US$2.4 billion). The agreement was signed for three years, and it can be prolonged.