Ukraine and Saudi Arabia are entering a new level of cooperation in the agricultural sector – N. Prisyajnyuk

In June 16, 2010 under XXIІ International Agricultural Exhibition “AGRO-2010” in Kiev, there were held negotiations of the first persons in agricultural sector of Ukraine and the Kingdom of Saudi Arabia. The initiator of the meeting was Charity initiative “Ukraine – Middle East”. The talks were attended by the Minister of Agrarian Policy of Ukraine Mykola Prisyajnyuk, MP, founder of the Charity initiative Pavlo Klymets, Deputy Minister of Agriculture of Saudi Arabia Dr. Abdullah A. Al-Obeid, and other representatives of the Ministry. According to the results of negotiations, the parties decided to begin systematic work in the field of agriculture, in particular, discussed the possibility of grain exports to Saudi Arabia, as well as the stated intention of creating joint ventures and technology parks in the agricultural sector in Ukraine.

The parties agreed on the importance of cooperation between Ukraine and Saudi Arabia in the field of agriculture, and discussed the investment opportunities of Middle Eastern partners in the Ukrainian economy. With the assistance of the Charity initiative “Ukraine – Middle East” the relevant ministries of the two countries started to develop a detailed investment plan. According to the Minister of Agrarian Policy of Ukraine Mykola Prysyazhnyuk, with the new marketing year, export of Ukrainian grain to Saudi Arabia can increase up to 1 million tons.

Nicholas Prisyajnyuk, Minister of Agrarian Policy of Ukraine: “The government fulfills its obligations in agribusiness sector reform and improves the investment climate in the country. In the near future there will be created a state grain company and the State Land and Mortgage Bank, through which investors will be able to hire Ukrainian land for joint cultivation and processing of agricultural products. Those benefits are very attractive. In addition, the new Tax Code provides for benefits under the priority areas of development – but they fall under almost all rural areas. Cooperation with Saudi Arabia – is guaranteed logistics, investment and market”.

According to Deputy Minister of Agriculture of the Kingdom of Saudi Arabia, Dr. Abdullah A. Al-Obeid, the shortage of water resources did not allow Saudi Arabia to develop their own agriculture effectively. The country abandoned cultivation of grain, and to ensure the needs of a growing population of the country imported 2 million tons of wheat last year.

Dr. Abdullah A. Al-Obaid, Deputy Minister of Agriculture of the Kingdom of Saudi Arabia: “Ukraine is now regarded as one of the leading countries for investment due to its rich natural resources. The coefficient of cooperation can be very high due to capital investment, new technologies, know-how. In addition, we intend not only to export from Ukraine, but also to establish production in Ukraine and to provide product local markets”.