Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

10 Jul 2012



PSD disclosed:

07 Jun 2012

Project Description

The EBRD is considering providing up to USD 20 million in debt financing to Agrofusion, with the goal of funding its capital expenditure, medium-term working capital as well as restructuring its balance sheet.

Transition Impact

The Client is the first and only modern, vertically-integrated tomato paste producer for the food industry market in Ukraine. The Transition Impact potential of the Project will derive from:

1) demonstration of sustainable agriculture and farming techniques for increased food security in the region;
2) skills transfer of modern farming techniques and training by a western agricultural expert specialising in tomato farming; and
3) setting standards for resource efficiency improvements with investments to promote water and energy recovery.

The Client

Agrofusion is the largest vertically-integrated Ukrainian industrial tomato paste producer for the food industry, which cultivates 11,500 hectares of land in the south of Ukraine.

EBRD Finance

Up to USD 20 million debt financing.

Project Cost

USD 20 million.

Environmental Impact

The project was categorised B and due diligence was undertaken by a member of the Bank’s Environment and Sustainability Department who visited both the Southern and Northern Plants and engaged in a number of discussions with a wide range of Company staff. The Company also provided a range of written documentation including a detailed environmental and social due diligence questionnaire.

The Company’s activities are associated with limited environmental and social impacts. The production facilities of the Company are very new and utilise the latest equipment. The Company has management systems in place with a number of staff covering environmental, health and safety and labour issues and have a good understanding of the key concepts underpinning sustainable behaviour. The Company implements a quality system, focused mainly on food safety now, which it is aiming to expand out to include environmental and health and safety issues hence creating a total quality system. This organised approach to environmental and health and safety issues is mirrored in the Company’s approach to labour issues which is fully compliant with the Bank’s PR2.

The Environmental and Social Action Plan agreed with the Company focuses on the continued development of the total quality system with agreed dates for the implementation of the ISO 14001 environmental management system, and the OHSAS 18001 system for management of health and safety. There will be a review of the Company’s current operations against the EU’s Best Available Techniques defined for the Food, Drink and Milk Industries and identify key stakeholders and develop a Stakeholder Engagement Plan as necessary.

The Company will be required to comply with the Bank’s Performance Requirements and provide annual reporting on the implementation of the ESAP and any other environmental and social issues.

Technical Cooperation

The project envisages the use of Technical Cooperation funds to involve a Western agronomist, who would advise the Client on how to maximise the effectiveness of modern tomato farming techniques in order to increase yields and to provide training to the Client’s / third-party tomato farmers and to graduates from the local agricultural universities.

Company Contact

Elena Schepelenko, CFO
Tel: +38 0512 587910


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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