Farmers in Ukraine to Benefit from World Bank Support
Mykola Siutkin
You do business, we mitigate risks | Business Investment Risk Advisor | Co-founder of S&P Agency | Attorney | Co-publisher LDaily | Ironman
The World Bank has announced a new project aimed at providing support to farmers in Ukraine who have been adversely affected by Russia's invasion. The initiative, called the Ukraine Agriculture Recovery Inclusive Support Emergency (ARISE) Project, aims to provide affordable loans and grants for agricultural production to over 90,000 farmers.
The conflict in Ukraine has had significant repercussions on the country's agriculture sector, posing challenges to both local food security and global nutrition. As a response, the ARISE Project will help farmers gain access to affordable finance in 2023 and 2024, mobilizing approximately $1.5 billion in working capital. Small farms will also receive grants to support their agricultural activities. This initiative complements the World Bank's overall support for agriculture in Ukraine, which aims to encourage private investments in the sector while strengthening credit guarantees for small-scale farmers.
The funding for the ARISE project includes a $230 million loan provided by the World Bank, with credit enhancement from the Advancing Needed Credit Enhancement for Ukraine (ADVANCE Ukraine) Trust Fund, supported by the Government of Japan. Additionally, a $320 million grant has been allocated from the Ukraine Relief, Recovery, Reconstruction and Reform Multi-Donor Trust Fund (URTF). The project design allows for up to an additional $150 million in funding, which can be sourced from further World Bank support and donor contributions.
Antonella Bassani, the World Bank Regional Vice President for Europe and Central Asia, emphasized the importance of the ARISE Project in supporting Ukrainian farmers during these challenging times. "With the war still raging, uncertainty continues to hang over Ukrainian agriculture, which has huge ramifications for the country and for global food and nutrition security. The ARISE Project will help thousands of Ukrainian farms, including many small ones, to continue producing in what are certain to be extremely challenging conditions in the months ahead," stated Bassani.
The impact of Russia's invasion on Ukraine's agriculture sector has been substantial, with estimates placing the cost at $40.2 billion. This figure does not even account for the removal of landmines and unexploded ordnances on agricultural land or the damages inflicted on irrigation, agri-logistics, and food processing facilities. The ARISE Project is therefore a crucial intervention to support the recovery of Ukraine's agricultural industry.
The ARISE Project will be implemented by Ukraine's Business Development Fund and the Ministry of Agrarian Policy and Food. It represents the fifth World Bank project approved for Ukraine this year, utilizing an innovative and flexible framework model that facilitates the rapid mobilization of partner resources to address urgent funding needs. This approach can also be scaled up as necessary when additional financing becomes available.
Moving forward, the World Bank and the Government of Ukraine will continue to prioritize investments and critical reforms in key sectors such as energy, health, social protection, education, housing, and agriculture.
This World Bank initiative showcases a coordinated effort to provide much-needed support to Ukraine's farmers, enabling them to rebuild their livelihoods and contribute to the recovery and stability of the country's agriculture sector.
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CEO at AER
1 年Who would a good contact be to maybe helping facilitate a loan in Ukraine for a farm grain production unit ?
Entrepreneurial Leader driving revenue growth with strategic planning and stakeholder management
1 年Mykola Siutkin It's heartening to see international organizations like the World Bank step up to help rebuild a nation and contribute to global food security. This project underlines the importance of international cooperation and assistance in times of crisis. I'm excited to see the positive impact this investment will have on Ukraine's agriculture and, by extension, the broader global food supply chain. #WorldBank #AgricultureRecovery #GlobalFoodSecurity ??????