Ukraine may start its first shipments of maize to China by the end of this year under an agreement which will allow the former Soviet republic pay back a $3 billion loan to the Asian giant. Ukrainian Agricultural Minister Mykola Prysyazhnyuk said on Monday that the way was clear for shipments to start after the two sides reached agreement on sanitary and other quality requirements for supplies of the commodity.
"Shipments of Ukrainian maize will be made in accordance with inter-government agreements and by private companies as well," Prysyazhnyuk was quoted as saying by his ministry. The outline agreement should enable Ukraine to pay off $3 billion worth of credit extended by China this summer, he said. A list of Ukrainian exporting companies would be sent to China in the near future.
Analysts say Ukraine, a major wheat producer which is also the world's fourth-biggest maize exporter, may in future be able to compete with the United States for China's maize market. The former Soviet republic said in July that it would supply 2.0 million to 2.5 million tonnes of maize to China every year to pay off the $3 billion loan. China's overall maize imports could total 6.0 million tonnes this year and might reach 8.0 million tonnes in 2013, according to Ukrainian agricultural ministry figures.
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