Business news from Ukraine

STATE FOOD-GRAIN CORPORATION REACHES AGREEMENT WITH CHINA CCEC ON GRAIN PREFERENTIAL MARGIN

15 June , 2016  

KYIV. June 15 (Interfax-Ukraine) – Public joint-stock company State Food-Grain Corporation and China National Complete Engineering Corporation (CCEC) have reached an agreement on the size of the preferential margin of 1.5% of the price, but no more than $5 per tonne and only if CCEC is the ultimate recipient of grain.

“Our achievement was an agreement with China’s CCEC on the size of the preferential margin of 1.5% of the price, but no more than $5 per tonne and only if grain is supplied to CCEC,” acting Board Chairman Borys Prykhodko said at a press conference in Kyiv on Tuesday.

Earlier the preferential margin was $5 per tonne. This was outlined in the contract on the provision of a $1.5 billion loan by China to the corporation.

Prykhodko said that since the start of 2015-2016 agricultural year (July-June) the corporation has shipped 660,000 tonnes of grain to CCEC.

“We are meeting our liabilities. We presented 132 offers to our partner on the possibility of shipping 5.2 million tonnes of grain, and only 13 offers were implemented,” he added.

He said that in 2015 the corporation supplied 1.5 million tonnes of grain through CCEC and this was 16% more than in 2014.