The EBRD Grants Ukraine's MHP Group a $90 Million Credit For Sunflower Oil Exports
- 15-Feb-2023 5:46 PM
- Journalist: Gabreilla Figueroa
Ukraine: The top producer and exporter of poultry and agricultural grains, and edible oil, primarily Sunflower oil from Ukraine, are MHP. In order to assist Sunflower Oil exports from the war-torn nation, Ukraine's MHP Group has obtained a $90 million loan from Europe's multilateral development bank. The European Bank for Reconstruction and Development (EBRD) granted the money to MHP to cover the seasonal working capital needs for its Sunflower Oil crushing segment in Ukraine, which began over a year ago on February 24, 2022, when Russia invaded Ukraine.
Corn, Wheat, Rapeseed, Soybeans, and Sunflower Oil are just a few of the food products that MHP is a significant producer and supplier of agricultural products. Before the conflict with Russia, which disrupted its operations, the firm also supplied over half of Ukraine's poultry output. The company runs three crushing facilities for edible oils, including Sunflower Oil, in Ukraine. According to the EBRD, the funding would also aid in maintaining the standard of living for employees and suppliers of oilseeds in Ukraine.
Ukraine has recently contributed significantly to the world's food security and supply of edible oils, including Sunflower oil, by producing one-third of the world's Sunflower Oil and exporting over half of it. The US will provide the so-called first loss risk protection for the MHP loan through its contribution to the EBRD's Crisis Response Special Fund. It also includes a technical support grant of EUR 75,000 (USD 80,678) to strengthen the group's ability to incorporate disabled people and veterans into the economy.
As per the ChemAnalyst database, it is anticipated that, according to MHP, the group has incurred significant war-related expenses since the Russian incursion on February 24. These costs totaled $45 million in the nine months leading up to September 30. They included donations to the local community, the write-off of inventories of Sunflower Oil and biological assets, and other war-related costs. In addition, Just Food, another brand in Ukraine, requested feedback from MHP regarding the loan, but they have not yet done so.