Tuesday, October 18, 2016

Ukraine a top agricultural investment destination

The Lawyer:


Investors surveyed for this report expect Ukraine’s agriculture and ports and shipping sectors to attract most capital in the next 18 months. Some 37 per cent cited these areas among their top three sectors targeted for investment in the next 18 months.

Agribusiness is a core pillar of Ukraine’s economy so it is no surprise that investors find this industry attractive. Historically known as the “breadbasket of Europe”, around 25 per cent of the world’s highly fertile black-earth soil is in Ukraine. The country is also the world’s largest exporter of sunflower oil and the second largest exporter of grain behind the US.

I am really excited about the agricultural investments I made in Ukraine a few months ago. My recent visit to Ukraine in August did not indicate what is portrayed on western television screens. The ag stocks I bought (Astarta and Agroton) are selling well below book value and over time as things normalize in Ukraine I expect the shares to be revalued higher.

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