KYIV. Sept 16 (Interfax-Ukraine) – Public joint-stock company State Food-Grain Corporation has used $400 million of the first tranche of a Chinese loan worth $1.5 billion.
The corporation said on its website, referring to Deputy Board Chairman Andriy Repko, that the sum was used to buy grain and industrial crops in Ukraine and to finance expenses on grain supplies to ССЕС Corporation under the cooperation agreements.
State Food-Grain Corporation said that the rest of the funds remain in the corporation’s accounts at Ukreximbank.
“In addition, Export-Import Bank of China authorized Ukreximbank to monitor the use of credit funds. Under the agreement, if infringements of the use of the funds are revealed, Export-Import Bank of China has the right to block a separate payment and the special accounts in general,” he said.
In August 2010, the government decided to create the State Food and Grain Corporation of Ukraine. The corporation has a chain of branches, comprised of grain storage facilities, flourmills, fodder factories and a cereals factory. The 53 subdivisions of the corporation can store a total of 3.75 million tonnes of grain, which includes the grain handling capacities of Odesa and Mykolaiv ports of around 2.5 million tonnes of grain cargo per year.
In late 2012, the State Food and Grain Corporation of Ukraine received the first tranche of $1.5 billion from the Export-Import Bank of China. The funds were to be allocated to carry out spot and forward purchases of four million tonnes of grain which would be shipped to China.
China National Machinery Industry Complete Engineering Corporation is the operator under the contract, which was signed for a period of 15 years.
The corporation plans to export 3.5 million tonnes of grain by late 2015 under the Chinese contract.
