12:33 23.05.2016

Ukrainian agriculture ministry asking China to decide State Food-Grain Corporation deal

2 min read
Ukrainian agriculture ministry asking China to decide State Food-Grain Corporation deal

Ukraine's Agricultural Policy and Food Ministry has written a letter to China's China National Complete Engineering Corporation (CCEC) with a request to decide on its participation in the privatization of public joint-stock company State Food-Grain Corporation.

"I've prepared a letter to the Chinese side as for State Food-Grain Corporation. We ask to determine their position in the context of readiness to take part in the company’s privatization," Minister Taras Kutovy said in an interview with Interfax-Ukraine.

Commenting on the possible participation of the Chinese company in the privatization, the minister said that all our large holdings are mainly public. They are listed on exchanges. They have international investors in their capitals.

Asked about the possible state-run companies' privatization scheme, Kutovy said that the ideal option for his is the sale of a minority stake of 25% with an option to purchase next 25% or 50%. The condition for his is achievement of good financial results.

The government in August 2010 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 some 2.5 million tonnes of grain cargo per year.

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