The Chinese have long been interested in the fertile lands of Ukraine.

The Chinese have long been interested in the fertile lands of Ukraine.

By A.Dunn

 

In the past, there were rumors about the lease of 100 thousand hectares of land in the Dnipropetrovsk region. According to Ukrainian and Chinese media, the land should have been leased for 50 years and developed by the Xinjiang Production and Construction Company. Subsequently, the area of ​​leased land was supposed to grow to 3 million hectares (despite the fact that the area of ​​all agricultural land in Ukraine is 42 million hectares). But this news caused a great public outcry, and the Ukrainian authorities even had to reject this deal.
KSG Agro, an agricultural company associated with China, which includes 42 enterprises, is already processing 94 thousand hectares of Ukrainian agricultural land. At the end of 2014, it was announced that the Chinese company Huangfan Qu would invest $ 58 million in agricultural production in the Chernihiv region. True, today this project is in limbo.

In 2016, the Chinese corporation COFCO Agri opened a terminal in the port of Nikolaev for transshipment of oilseeds and grains, capable of passing up to 2.5 million tons per year. The project cost about $ 75 million, and now the terminal is operating at almost full capacity, regularly sending ships with grain to China. The same company has several large elevators and an oil extraction plant in Ukraine, and also plans to invest several tens of millions of dollars in Ukrainian agriculture.
Finally, the "State Food and Grain Corporation of Ukraine" is also in the sphere of interests of the Chinese. In particular, among the GPZKU assets are elevators (total volume of 3.75 million tons), mills, feed mills and cereal plants. SFGCU also has experience of cooperation with the Chinese side. In 2012, the state corporation agreed with the Export-Import Bank of China to provide a loan of $ 1.5 billion, the funds of which were planned to be used to purchase grain from private traders for export under trade agreements with the China.
The interest of China in the Ukrainian arable land is obvious. Ukraine is a major supplier of agricultural products to the Chinese market. More than 3.5 million tons of grain, as well as 500-600 thousand tons of chicken, pork, and sunflower oil are supplied to China annually. But the Chinese themselves would like to earn on the supply of agricultural raw materials to their homeland, Ukrainians will not see their investments.

28.08.2019

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