The European Bank forReconstruction and Development (EBRD) is continuing to invest in improvementsin grain handling and transportation infrastructure in Russia and Ukraine, withthe aim of increasing export capacity in these countries.

In the EBRD’s latest investmentin this sector the Bank will make available funds for capital increases ofLouis Dreyfus Commodities Silos, which operates in the Stavropol, Voronezh andVolgograd oblasts of Russia. The Bank is taking an additional equity stakeworth up to US$ 30.5 million.

Louis Dreyfus Commodities is oneof the world’s global leaders in agribusiness and a long-standing partner ofthe Bank in the region since 2000. Earlier in 2013 the EBRD provided a US$ 75million working capital facility for the company’s subsidiaries in Ukraine andRussia – Louis Dreyfus Ukraine Ltd and Louis Dreyfus Vostok LLC.

These financing programmes signedbetween the EBRD and Louis Dreyfus Commodities in 2013 will enable thedevelopment of on-going export activities, upgrades and expansion of thecompany’s existing silos in Ukraine and Russia, and the acquisition andconstruction of new silos in Ukraine. The EBRD will also finance theimprovement and expansion of logistics operations in Ukraine and Russia, whereLouis Dreyfus Commodities operates a total of 18 grain silos which support thecompany’s merchandising activities, primarily in grains and oilseeds.

 The EBRD’s Director forAgribusiness, Gilles Mettetal said: “The food security issue is high on theagenda of the Bank. In this respect the successful development of theagricultural sector in Ukraine and Russia, which are major grain suppliersworldwide, has not only regional but global importance. The Bank is happy tosupport the expansion of the operations of Louis Dreyfus Commodities, which isstrongly engaged in the region and which views it as a vital hub for itsgrain-related activity.”

The projectis also part of the EBRD’s broader Private Sector Food Security Initiative,which is aimed at addressing a number of fundamental problems in theagricultural sector, including inadequate logistics infrastructure and a lackof financing and know-how transfer, which prevent countries like Ukraine andRussia from achieving their full potential. The initiative has successfullybrought together representatives of the private sector and relevantauthorities, with the aim of breaking down barriers to investment.

The EBRD is the largest financial investorin Ukraine. As of 1 September 2013 the Bank had committed more than €8.6billion (US$ 11.6 billion), through 327 projects, in Ukraine.

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