By KYIV. Nov 9 (Interfax-Ukraine) – The sectoral working group on the agro-industrial complex has developed 25 proposals for changes in policy in the field of crop production, livestock farming, raw materials, advanced processing and infrastructure, 15 of them have been selected for possible implementation within the framework of the Ukraine Facility program plan and the development of sectoral development strategies.
“The agricultural complex occupies an important place in the Ukrainian economy, providing on average about 10% of GDP and more than 40% of export earnings. At the same time, the sector has significant development potential and our work with business helps determine priorities for the industry. The group’s work will be taken into account in the preparation plan and proposed for inclusion in the sectoral development strategy,” said Deputy Economy Minister Oleksiy Sobolev.
According to him, some of the proposals received have already been included in the document. In particular, it is envisaged to strengthen relevant institutions and regulatory frameworks through harmonization with EU requirements, support for value chains, as well as harmonization of sanitary and phytosanitary standards with EU norms.
“As part of the implementation of the plan, an Agriculture Development Strategy will be developed and adopted. It will foresee the inclusion of goals such as national strategic plans of EU member states (candidate countries) and areas requiring special attention in Ukraine, such as land reform, irrigation, post-war reconstruction and support for development,” said Mykola Moroz, head of the strategy department for the agro-industrial complex of the Ministry of Agrarian Policy and Food.
In addition to the proposed policies, members of the sectoral group provided 88 proposals in the field of potential investment with a total budget of more than $3 billion. Of these, 34 initiatives relate to the processing sector, 19 livestock and 17 infrastructure.
The Ministry of Economy notes that the format of the plan does not provide for the inclusion of investment projects, while at the same time their analysis and elaboration are necessary to determine priority subsectors for development within the framework of a special investment instrument provided for by the Ukraine Facility program. Relevant proposals will be submitted to the Ministry of Agrarian Policy and can be taken into account in the strategy for the development of the agro-industrial complex until 2033.
The Deputy Minister of Economy noted that an additional incentive for the development of the agricultural sector would be the opportunity for investors to receive financing through the EBRD, the EIB, and other international financial institutions. For this purpose, a special investment instrument is provided to cover risks in priority sectors in the amount of EUR8 billion. It should stimulate the attraction of more than EUR30 billion into the Ukrainian economy.
At the same time, the Ministry of Economy estimated the needs for restoration and recovery in agriculture at $29.7 billion in 2023-2033. To restore the irrigation system, $2.6 billion will also be needed in 2027-2033.
