The European Bank for Reconstruction and Development (EBRD) has snapped up a minority stake in a Ukrainian cheese maker owned by French giant Groupe Bel.

The EBRD said yesterday (13 December) that it had bought a 17.5% stake in Shostka, which Bel bought in April.

The EBRD, which invests cash in companies based in the emerging markets of Eastern Europe and the former Soviet Union, had signaled its plans for Bel back in September.

The bank said the Shostka investment would be used to finance the modernization of the company's production facility and to increase the site's capacity.