“Although we have a favorable climate and fertile soil, the agricultural sector of Ukraine is working only at 50% of its capacity due to the use of outdated farming methods and poor quality machinery and equipment. For this reason, today, the Ukrainian agricultural sector needs new investment projects that will help to improve the competitiveness of the domestic agricultural sector in the world”,  Oleksii Pavlenko, the Minister of Agrarian Policy and Food of Ukraine, noted while delivering a speech at the International conference  “Focus Ukraine: Global Export Credit Agency and Multilateral Financial Institutions Strategy Meeting”.

The Minister reported that, at the current stage, investments were needed to enhance competition in all sectors of agriculture. Investments will ensure further development of the industry and harmonization of the conditions for all players in the agricultural market.

“To unlock its agricultural potential, Ukraine needs investments in infrastructure, technology, and equipment. In addition, it is extremely important for us to support small and medium farming and to ensure investments in the production of value-added products,” Oleksii Pavlenko added.

Moreover, according to the Minister, a key area for the agricultural sector in 2016 should be the production of bioethanol, which will ensure the energy independence of the country. The potential of this area is huge: Ukraine can produce 21.8 billion cubic meters of biogas, 1.5 million tons of bioethanol, 1.2 million tons of biodiesel, and 37.9 million tons of solid fuel.

In 2016, the Ministry of Agrarian Policy shall take a number of steps to develop the production of bioethanol:

- drafting of bills aimed at improving the legislation on the “green tariff” (electricity production based on biogas and biomass);

- promotion of the licensing system, for example, in 2015, the licensing of biogas and liquid biofuels production was canceled;

- implementation of joint projects in the sphere of production and export of bioethanol and biofuels.

“All these areas provide interesting opportunities for investors, ensuring a high yield and thereby contributing to the development of the Ukrainian economy”, Minister Oleksii Pavlenko concluded.