The European Bank for Reconstruction and Development (EBRD) will lend US$90 million to MHP Group, one of the leading grain, poultry and edible oils producers in Ukraine and southeastern Europe.
This funding will support the production of sunflower oil for export from Ukraine and maintain the livelihoods of employees and oilseed suppliers in Ukraine.
According to the EBRD, Ukraine has in recent years produced a third of the world’s sunflower oil and accounted for nearly half of global exports of sunflower oil, playing a crucial role in global food security and edible oils supply.
“Russia’s war on Ukraine has disrupted operations across the economy and existing supply chains, negatively impacting Ukraine’s sunflower seed harvest and sunflower oil production and putting further pressure on agriculture produce availability and prices, increasing the need to support the sector,” says the EBRD. “MHP Group operates three sunflower crushing plants in Ukraine and is among the biggest sunflower oil producers in the country.”
The loan will finance MHP’s seasonal working capital needs, allowing the company to procure the sunflower seeds to crush into edible oil for export.