The President of the European Bank for Reconstruction and Development has met the Senior Management of Farmak as part of her two-day visit to Kyiv. A tour of the plant and an assessment of the manufacturing lines financed by the EBRD were a key part of the event.
Farmak has been cooperating with the EBRD for 15 years. During this period, the parties have signed four loan agreements totalling EUR 67 million. “The EBRD’s investment is one of the first steps in transforming the Company from a local manufacturer to a major international player. We appreciate this cooperation and consider the EBRD to be our key strategic partner,” Filya Zhebrovska, Chairman of the Supervisory Board, said during the event.
The first loan granted by the EBRD in 2006 was used to modernize the sterile and non-sterile manufacturing facilities, as well as to bring the facilities in line with GMP.
In 2013, Farmak got an investment from the EBRD to modernize warehouses and research laboratories and to expand tablet manufacturing facilities.
2014 was an important year in the cooperation between Farmak and the EBRD. At that time, amid the war in the east of Ukraine and the economic crisis, Farmak was granted the third EBRD loan to support the Company’s operations. Subsequently, the EBRD supported Farmak in applying for foreign investment license which was another step towards the development of the Company’s international activities.
The most recent, fourth EBRD loan was granted in 2019. This investment was used for the construction of a new workshop for the manufacture of liquid dosage forms, office and laboratory rooms, as well as for the actions to improve energy efficiency at production units.
“The first loan was probably the most difficult for us. We faced new international reporting standards, additional environmental requirements and the constant monitoring of loan use and the construction process. Initially, we hired consultants, but soon we learned to report independently. But these 15 years of cooperation have changed us. We have grown, mastered new approaches and technologies, introduced best business practices and standards. And we are grateful to the EBRD for its genuine interest in business development and professional support,” Volodymyr Kostiuk, Chief Executive Officer of Farmak, said.
During the visit, the President and representatives of the EBRD have praised the disposal of investment in Farmak’s growth over 15 years. The guests of the Company emphasized that the EBRD appreciated long-term partnership projects which made it possible to observe the companies’ sustainable development as well as efficient use of funds invested in the new manufacturing lines a few years ago.
Background information:
During her first official visit to Ukraine on March 22 and 23 where the EBRD makes investment, the President Odile Renaud-Basso attended high-level meetings.
Renaud-Basso met President of Ukraine Volodymyr Zelensky, Prime Minister Denys Shmyhal and other government and business leaders.
The discussions were focused on the reforms required to create investment opportunities for the EBRD and other investors, as well as recovery from the Covid-19 pandemic.
In addition, the EBRD President made a short speech during the virtual implementation of the National Economic Strategy of Ukraine 2030.
Ukraine is one of three main investment focuses of the EBRD. In the recent two years, the Bank has allocated EUR 2 billion to support the country’s economy. Investments are combined with supporting the policy aimed at fighting corruption, proper management of state-owned enterprises, structural reforms and a more transparent business environment.
