The European Bank for Reconstruction and Development (EBRD) is to lend a Swiss-American joint venture in Ukraine up to US$30m to help it develop an effective edible oil crushing plant.

Ilichevsk Maslo Extraction Zavod JSC, a 50/50 joint venture owned by the USA’s Archer Daniels Midland and Switzerland’s Risoil SA, will exploit the potentially rich oil production sources offered by Ukrainian farmers and traders.

 “While there have been several foreign investments in the sector, the Ukrainian oilseed sector is still short of working capital, know-how and upgrades of outdated equipment,” said an EBRD memorandum.

The bank added that the sector also needed better regulation and it is working with the Ukrainian government to promote reforms.