| U.S. AMBASSADOR TEFFT SPEAKS AT $50 MILLION AGRO-LOAN SIGNING |
Citibank, OPIC, Astarta & Kernel sign agreement on two $25 million long-term investment loans U.S. Embassy, Kyiv, Ukraine, Thursday, January 19, 2012 U.S.-Ukraine Business Council (USUBC), KYIV - At a signing ceremony, U.S. Ambassador John Tefft congratulated Citibank for leveraging its partnership with the U.S. Overseas Private Investment Corporation (OPIC) to provide long term investment loans to Astarta and Kernel. These are the first companies in Ukraine to make use of this special program. Each five-year loan is for $25 million. Astarta will use the loan to modernize sugar production. Astarta expects to create 300-400 new jobs and improve infrastructure in rural areas of Ukraine, especially to Vinnitsa and Poltava regions. As a result, the company expects increased revenues and tax payments to the state budget. Kernel will use the loan to build a grain silo network in Kirovograd and Cherkassy regions. The project is expected to create 180-200 jobs, and result in increased revenues and tax payments to the state budget. U.S. AMBASSADOR TEFF'S REMARKS: I am glad to be part of the event. Thanks to Citi Bank Ukraine and to Steve Fisher for his leadership in making potential partnerships a reality in Ukraine. For those who are unfamiliar, OPIC is the US Government’s development finance institution. OPIC plays an important role in facilitating and supporting US investment overseas and helping developing economies grow. OPIC had previously provided more than $254 million in financing and insurance to 21 projects in Ukraine, in sectors ranging from manufacturing and construction to energy and financial services. Frankly speaking, Ukraine can be a difficult place to do business. However, companies like Astarta and Kernel demonstrate that it is possible to have a successful business in Ukraine that meets international standards for operations, governance and transparency. I hope these two deals will be an example for other companies that want to partner with Citi bank and others. These two deals also highlight the great potential for growth in Ukraine’s agricultural sector. We see enormous possibilities for Ukraine’s farmers and agricultural companies, if they are allowed to invest and develop their businesses without interference or excessive regulation. The OPIC program is a prime example of the US government’s commitment to Ukraine’s long term economic growth. To use the English expression, we are literally putting our money where our mouth is by providing millions of dollars to support Ukrainian and American companies. In closing, I want to applaud Citi bank for its contribution to Ukraine’s financial sector. Most recently Expert Magazine called Citi “the most reliable bank in Ukraine.” That comes as no surprise to many in the audience. Citi’s commitment to excellence, performance and transparency make it stand out and make it a shining example of how a financial institution can play by international rules, and still be profitable and successful. I congratulate Citi Ukraine, Astarta and Kernel on their new partnership, and wish them great success. 
Amb. Tefft greets participants of the OPIC - Cit Bank Ukraine Signing Ceremony January 19, 2012 
Amb. Tefft speaks at $50 million agro-loan signing in Kyiv. LINK: http://ukraine.usembassy.gov/events/opic-citi.html USUBC NOTE: Citibank & Astarta are members of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.usubc.org. |
