Corporate News
The CEO of AGROTRADE Group Vsevolod Kozhemyako reveals the plans for 2012 in his interview for "InvestGazeta"
Vsevolod Kozhemyako confirmed that the European Bank for Reconstruction and Development (EBRD) is considering a possibility of providing a loan of 28 mln to AGROTRADE Group to finance its working capital and investments in grain handling and storage infrastructure at the end of February. "The issue of deficit of modern facilities for grain handling and storage is especially acute in Ukraine. Therefore within the framework of the financing given by the EBRD we are planning to carry out works on a production reconstruction and modernization at three silos in Poltava, Sumy and Kharkov Oblasts. And also on building of the first turn of grain silo in Chernihiv Oblast. The growth of drying capacities will allow agrarians of these four Oblasts to shorten the harvest period of the late grain crops", - he points.
Furthermore, the short-range plans of AGROTRADE Group include the construction of the seed production plant. “Currently there is a lack of this produce. In 2012 we are going to invest about €15 mln in infrastructure and construction (including the series of the seed production)”, - Vsevolod Kozhemyako declared.
Vsevolod Kozhemyako has commented on the circulated in the Verkhovna Rada the draft law on land market: “We are FOR the land market as many other producers. But against the law that made the land purchase and sale even less transparent. What is the need, for instance, in land fragmentation and restriction of the number of leased lands in regions and in the whole country? (Adopted in the first hearing the Draft Law stipulates the right for an individual to have maximum a 100 hectares of land in the private property for one person, land ownership is not allowed to legal entities. Moreover, it sets the land areas leased by companies within the scope of 6 000 ha per region and up to 100 000 ha wholly in Ukraine). Small farmers will not be able to cultivate all the land. How will they raise funds for this? One hectare needs investments of $1000. Ukraine has 35 mln hectares. Where will the public authorities derive these costs? In my judgment, it is putting a time bomb. The frameworks set by the government for the agrarians can lead to the sector destruction. In these conditions we will not be able to implement the President`s task to make Ukraine a world`s leader in agri production”.
Vsevolod Kozhemyako mentioned that a not always reasonable policy of the government wholly is one of the risks for doing a business in agri sector of Ukraine. “These are spontaneous and not very effective measures to restrict export and not very well-thought-out Law on land market that undermines the idea of Ukraine to be the world`s leader in agri production itself. The dialogue between public authorities and business is subpar. Partly through the fault of businessmen. Therefore, together with other companies’ managers and owners we are trying to build it up but this needs time. Currently, the agri sector is pressing forward and encourages investments in Ukraine. I believe that agri sector is a future of the country”, - he says.