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Ag minister: Exports will double in 3yrs
Journal Staff Report

WASHINGTON, July 13 - Ukraine will double grain exports within the next three years, Oleksiy Pavlenko agriculture minister wrote in an article for The Wall Street Journal.

Ukraine, already one of the world's top three grain exporters, will capitalize on reforms and investments and investments in the agriculture sector, he said.

"We are determined to intensify the reforms," Pavlenko said. "Ukraine will double its grain exports in the next three years."

The article was published on the day the Ukrainian government was showcasing reforms at the first U.S. - Ukraine Business Forum in Washington D.C. The Ukrainian government team was led by Prime Minister Arseniy Yatseniuk. The U.S. team was led by Secretary of Commerce Penny Pritzker.

As Ukraine is being torn by the Russian military and the political support to the rebels in Donetsk and Luhansk the government reiterated its commitment to reform the economy including the agriculture sector.

"The sector has suffered significant losses due to the Russian aggression in the east, with farming land turned into battlefields," Pavlenko said. "Some major investments, such as Cargill’s sunflower-seed-crushing facility in Donetsk, were destroyed."

"The Ukrainian army and the political support from the U.S. and the European Union helped to stop the aggressor and gave the government time and space to focus on the reforms," Pavlenko said.

The government plans to sell 254 state farming companies by the end of the year as part of the reform process.

"Privatization is only one of the measures under way. Others include deregulation and fighting corruption," Pavlenko said. "Unlike Russia, which in January restricted grain exports, Ukraine is encouraging free trade to unlock its potential."

"The results exceeded our expectations," Pavlenko said, adding that Ukraine has managed to increase its grain exports by 4.6% to 34.6 million metric tons of grain in the 2014-2015 marketing year, ending June 30.

"Even with less farmland and fewer ports due to the annexation of its Black Sea peninsula of Crimea, Ukraine boosted its grain exports," Pavlenko said.

U.S. businesses are preparing to supply $1 billion of farming machinery to Ukraine, while new investments will expand capacity of our ports and railways. This will help Ukraine increase its grain exports.

"We are targeting new markets, including developing nations suffering from hunger in Asia, Africa and the Middle East, helping the U.S. promote stability, peace and democracy throughout the world," Pavlenko said. (ob/eb/ez)




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