Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

18 Sep 2007



PSD disclosed:

17 Aug 2007

Project Description

The proposed project comprises the acquisition of a major Ukrainian cheese producer, Shostka, which will be jointly owned by the French Group Bel and EBRD. The investors will expand Shostka’s cheese production capacity and enhance its related infrastructure.

Transition Impact

Transition impact derives from supporting investment of the dairy sector in Ukraine and the development of a Ukrainian dairy company. In addition, backward linkages will be created and strengthened by increased relationship with the local farming community. The Company’s aim is to lift the average milk production per cow as well as the quality of the milk, facilitate an increase in the size of farms within its network and increase the number of large suppliers.

The Client

OJSC Shostka City Milk Factory, a single-site producer located in the North of Ukraine.

SICOPA a wholly owned foreign investments arm of Group Bel , the Sponsor, 97.5% owner of Shostka, one of the world's leading branded cheese producers.

EBRD Finance

Equity investment to acquire a minority stake in Shostka.

Project Cost

Up to USD 29 million co-financed by SICOPA and EBRD.

Environmental Impact

Screened B/1 requiring an environmental, health and safety (EHS) audit and analysis of Bel Shostka’s plant and associated facilities. The audit and analysis, which is due to begin shortly, will benchmark the plant and facilities against Ukrainian and relevant EU regulations and standards, including the European Commission’s Integrated Pollution Prevention and Control Reference Document on Best Available Techniques (BAT) in the Food, Drink and Milk Industry (August 2006). Any identified non-compliances with national and EU/BAT will be formulated into a costed and time-bound Environmental and Social Action Plan to be agreed with the Company prior to Final Review. This summary will be updated once the audit and analysis have been conducted and an EAP has been agreed.

Technical Cooperation

Will be sought to specifically assist small farmers to improve milk quality and productivity.

Company Contact

Rodolphe Boivin

16 Boulevard Malesherbes
75008 - Paris



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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