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China's Agricultural Deals with Ukraine in Jeopardy -- The Diplomat
Reports that China wants $3 billion in loans returned call into question the future of China-Ukraine agricultural deals.
Russian media have been reporting that China is seeking the return of $3 billion in loans. The reports, also picked up by the South China Morning Post, cite an unnamed Ukrainian official as saying that China has filed a complaint against Ukraine for reneging on a deal where $3 billion in loans from China would be repaid in corn exports from Ukraine. According to the official, Kiev only provided a little over $150 million of worth of grain to China.
The original deal was signed in the fall of 2012. At the time, Ukraine’s agriculture minster, Mykola Prysyazhnyuk, told Financial Times that in return for access to $3 billion in loans, Kiev would export about 3 million tons of corn to China each year. Although China has in the past used a similar arrangement in oil-for-loans deals, the arrangement with the Ukraine was a first for China. The loan money was supposed to be mostly put back into the agricultural sector, including a $3 billion irrigation plan for the southern part of Ukraine.
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Previous Post: Did China Just Buy 5% Of Ukraine?
My Comment: I commented on this deal last year .... I hated it then .... and I hate it even more now because I know that huge payoffs were involved .... and no surprise .... we now know that the money has disappeared. This loan call-back is going to have a serious impact on Ukraine .... other lenders are taking note, and are now probably even more wary in providing aid to Ukraine.
5 comments:
And the Chinese are the types to "mean it" when it comes to money.
I have done business with the Chinese James .... and you are absolutely right when it comes to money with them.
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