July 9, 2012

 

Ukraine to offset China loan with corn annually

 

 

In order to pay off a US$3 billion loan from China, Ukraine will supply two million to 2.5 million tonnes of corn every year, Ukrainian Farm Minister Mykola Prysyazhnyuk was quoted as saying on Friday (July 6).

 

China's Eximbank plans to lend Ukraine up to US$3 billion to finance agricultural projects.

 

The farm ministry and the bank signed a memorandum of understanding on June 28 and are now finalising the deal. It gave no details of the loan.

 

"According to the memorandum, Ukraine is due to supply 2.0-2.5 million tonnes of corn to China every year," Den daily quoted Prysyazhnyuk as saying.

 

Earlier this year, the Agriculture Ministry said it was working on a landmark quarantine agreement with China to gain access to its huge market.

 

Ukraine, which has had no access to the Chinese market for the last 10 years, hopes this year to sell three million tonnes of corn to China, the world's largest consumer of the commodity.

 

Ukraine has boosted its corn output in the past several years and plans to harvest at least 20 million tonnes of the crop in 2012 and could export about 10 million tonnes in the 2012-13 season.

 

The former Soviet republic harvested 22.7 million tonnes of corn in 2011 and exported 13.86 million tonnes of corn in 2011-12.