On December 5, 2016, MIGA issued guarantees of $6.4 million for an investment by Lantmännen ek för of Sweden into Lantmännen AXA PJSC in Ukraine. The MIGA guarantees will cover the investment for a period of up to 10 years against the risks of expropriation, transfer restriction and war and civil disturbance.
The project involves the operation of a factory, warehouse, and office building of a manufacturing company producing breakfast cereal foods. The factory is located in the industrial area of the town of Boryspil in the Kiev region.
The project is a Category B under MIGA’s Policy on Environmental and Social Sustainability since it is expected to have limited environmental and social impacts which are site-specific, largely reversible, and can be readily addressed through mitigation measures. The key environmental and social issues associated with this project include: environmental and food safety management systems; occupational health and safety; utilization of equipment and operational practices that maximize conservation of energy; waste management; management of air emissions; life and fire safety risks; impacts of warehouse infrastructure and Environmental Health and Safety (EHS) issues associated with the supply chain. These impacts can be avoided or mitigated by adhering to MIGA’s Performance Standards, the World Bank Group (WBG) General EHS Guidelines, industry specific WBG EHS Guidelines for Food and Beverage Processing, and internationally recognized food safety management good manufacturing practices.
The project supports an efficient and reputable European company’s investment into Ukraine. MIGA’s support will enable the investor to continue and expand operations, despite Ukraine’s current economic and political challenges. The project will, therefore, provide a positive demonstration effect for other potential investors. The project also supports 194 permanent jobs (of which 104 are female) and will purchase significant inputs from local markets. In addition, it will provide tax revenues for the Government of Ukraine.
The project would be underwritten under MIGA's Small Investment Program.