Russian investment group Summa, which owns half of Russian state grain trader United Grain Company (UGC), plans to build a grain and container terminal in Ukraine’s Mykolayiv region on the Black Sea when tensions ease, it said.
While most investors are steering clear of Ukraine after tensions escalated between Russia and Ukraine over a new government, Summa said it was still interested in investing in one of the world’s leading grain exporters via the Black Sea.
Russian President Vladimir Putin won parliamentary approval to invade Ukraine if the situation worsened there, although he has yet to take that decision.
“(Mykolayiv) is one of the key regions for Ukraine’s economy, it’s attractive for investments,” Summa said in a statement on its exposure to Ukraine.
“We are looking for the political situation in the country to stabilize so we could start the project.”
Summa is at an advanced stage in negotiations with the management of a fish-canning plant which will provide part of its territory for the terminals.
Summa declined to provide further details.
Summa may invest $300 million in the project, the source familiar with the project told Reuters. The grain terminal will have an initial capacity of 5 million tons of grain per year with a possible increase to up to 10 million tons.
The container terminal will have an initial capacity of 250,000 twenty-foot equivalent unit (TEU) a year with a possible increase to 500,000 of TEU, the source added. (Reuters)