Cargill to Build New Terminal at Port of Odessa
- New Europe Investor
- July 23, 2015
American multinational food processing company, Cargill is to invest $100 million into the construction of a new terminal at the Port of Odessa.
An agreement was reached at a US-Ukrainian business forum recently held in the United States.
Cargill are interested in building a deep water port in which there will be cooperation with Ukrainian company MV Cargo.
In recent years, Cargill has expressed an interest in building a grain terminal on the Black Sea which could contribute to the development of its grain and oilseed business in the region.
East Ukraine Operations
Last year, Cargill reported that its sunflower oil plant on the outskirts on Donetsk in Eastern Ukraine had been seized by ‘armed individuals’. The company had previously halted operations at the plant built in the 1990s due to rising tensions, and removed all employees from the facility.
Latest reports are that the plant was completely idle having being shelled in the ongoing conflict between Ukrainian forces and Russian separatist rebels.
The Ukraine has in the past attracted heavy investment from the world’s largest agricultural trading houses as the country is a major producer of wheat, corn and other crops.
Cargill’s plans to invest in the country despite its loss in the conflict display that some confidence remains in the country.
The Ukraine experienced a first quarter drop in GDP of over 17% compared to the same period in 2014. The World Bank recently increased its GDP contraction predictions for the economy to 7.5% for 2015.