European Poultry Meat Producers Were Indignant at Allocation of 100 Million Euros to the Ukrainian Agricultural Holding
OREANDA-NEWS. “Politico” newspaper wrote that AVEC, the European association of poultry processors and traders, was “extremely surprised” by the fact that the European Bank for Reconstruction and Development (EBRD) intended to allocate a loan of 100 million euro to the Ukrainian agricultural holding “Mironovsky Khleboprodukt”.
The loan was to be floated to balance the company’s finances after acquisition of the Slovenian poultry farm “Perutnina Ptuj” in November 2018. “The use of EU taxpayer money to facilitate the acquisition of an EU poultry company by a Ukrainian company, which has largely benefited from this [chicken breast] loophole, clearly adds to the frustration of EU producers," the “Politico” article said.
Earlier, it reported that the agricultural holding, which was owned by Ukrainian billionaire Yury Kosyuk, used the “loopholes” in the EU – Ukraine trade agreement to increase deliveries of chicken to EU members. According to the agreement, Ukrainian producers have the right to duty-free deliveries of chicken breast with bone to the EU. “Mironovsky Khleboprodukt” sent a semi-finished product to processors in EU countries, they separated the bones from meat, which was then sold as chicken fillet.It is expected that the EBRD will take the decision on lending “Mironovsky Khleboprodukt” on May 22. The EBRD is not a financial institution of the European Union, but all the member countries of the community, the European Commission and the European Investment Bank are its shareholders.