In Chernihiv region, a project to issue an agricultural note worth UAH 10 million was implemented in partnership with OKKO
An agricultural producer from Chernihiv region raised financing in the amount of UAH 10 million through the commodity agricultural note instrument, where the lender was JSC Concern Galnaftogaz (OKKO network), and technical maintenance was provided by the depository institution LLC Rosan – Securities.
This demonstrates the scaling of the digital agricultural note instrument and its integration into real business operations of the Ukrainian market. The transaction mechanism involves the provision of fuel in exchange for the future harvest, which allows the farmer to obtain the necessary resources for sowing without using “live” money at the start.
In particular, the agricultural producer received petroleum products from OKKO for seasonal work, and in return undertook to supply agricultural products, such as wheat, after harvesting. The entire transaction went through the depository system, which guaranteed the speed and reliability of the process.
The introduction of this instrument in Ukraine is supported by Switzerland and the International Finance Corporation (IFC), becoming an alternative to traditional bank lending. Agrarian notes help reduce risks for creditors thanks to clear mechanisms for guaranteeing supplies and simplify farmers’ access to fertilizers, seeds or fuel against the collateral of future products.
This instrument can also be used as collateral for bank loans and be subject to state guarantees. According to IFC project manager Kirill Mukhomedzyanov, “we see the formation of a full-fledged ecosystem.
The next stage is scaling and integration with banking products.” In addition, farmers in frontline areas will now be compensated for up to 80% of the costs of land reclamation and restoration of irrigation infrastructure, which should help farms in high-risk areas maintain their potential.
