The revolving facility will be used by the client for origination (i.e., purchase directly from farmers), transport, storage , local sales and export/import operations with the agricultural commodities. Alternatively , the commodities will be processed on tolling basis in Russia , with the finished goods been sold locally or be exported.
The project will inject liquidity directly into the primary agricultural sectors of grain farming, where Russia has a great natural advantage - having probably one of the best natural growing conditions in the world.
The farming sector in Russia is in an early stage of transition and the project will address two obstacles to transition of the sector, (i) the inefficiency of the primary markets for the origination of agricultural products, resulting in lack of transparency, high volatility and low prices for the farmers and (ii) the lack of trust in a reliable grain warehousing system.
The project will help achieve the transition objectives as follows:
1. By injecting liquidity, the project improves the functioning of the market. The availability of working capital financing will allow farmers to decide when to sell their commodities in order to maximise return.
2. Before the Warehouse Receipts (WHR) system is in place, the project will help improve services available in the sector: upgrade the warehouse storage facilities, and introduce inspection and licensing systems. Actex and its key shareholder, Toepfer, is strongly committed to reform of the grain storage sector and introduction of the WHR legislation, will demand adequate standards from the local silos and promote the WHR system in Russia.
3. The visible participation of Toepfer will lead to increase in the transparency in this market. An international player will be thus reducing the proportion of cash transactions and helping the farmers get better prices for their produce.
4. The project supports the Bank’s policy dialogue with the Russian Government on the introduction of the adequate WHR system. The demonstration effect of the project with participation of a large international sponsor in one of the key sectors is expected to be significant. The experience in other countries (e.g., Kazakhstan, Ukraine) shows that commitment of international traders can be an important factor in strengthening policy dialogue.
ACTEX Ltd. (the Borrower), a 50/50 joint venture between the Germany-based Toepfer group, a major agricultural commodities trader and ExportKhleb, a well known Russian grain trading company.
A revolving loan facility of up to US$ 15 million to the client.
Around US$ 30 million, inclusive of parallel loans.
C/0. By nature of its business, the client will not be directly involved in any kind of processing activities, therefore, environmental issues associated with the project are not considered to be significant.
Alexander Bessarabov, Senior Trader, ACTEX
Sivtsev Vrazhek 25/9, Moscow, Russia
For business opportunities or procurement, contact the client company.
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
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.