IFC to Invest $40 Million in Astarta, Enhance Agricultural Productivity in Ukraine

IFC announced a $40 million investment in Astarta, a leading Ukrainian agricultural group, to support the construction of the country's first soy protein concentrate plant. The investment is in line with an up to $80 million financing package approved by IFC’s Board of Directors on April 1, 2025. The project is expected to boost employment, enhance agricultural productivity, and drive economic growth.

The financing package includes a $27 million loan for IFC’s own account and a $13 million concessional loan from the government of the Netherlands. IFC’s financing is backed by guarantees from the European Commission’s Ukraine Investment Framework, and the government of the Netherlands in support of IFC’s Economic Resilience Action (ERA) Program for Ukraine.

Viktor Ivanchyk, Astarta’s CEO and founder, said: “This investment is a strong example of how strategic international partnerships can turn challenges into long-term opportunities for Ukraine. By launching the first domestic production of soy protein concentrate, we help integrate our country into global food value chains and contribute to economic recovery, industrial modernization, and job creation. Astarta is committed to implementing this project as part of our long-term strategy for sustainable agribusiness development.”

While business activity has started to recover since 2023, many firms remain vulnerable and operate below capacity, notably in Ukraine’s large agriculture sector. Major constraints include security risks, labor shortages, rising input costs, and power outages. IFC estimates that the investment, through direct and indirect economy-wide effects, will generate $680 million in foreign exchange earnings, contribute $116.5 million to the economy each year, and create approximately 3,000 jobs.

“This investment will help Ukraine produce more high-value agricultural goods and move up the value chain,” said Alfonso García Mora, IFC’s Vice President for Europe, Latin America, and the Caribbean. “By making the sector more competitive and better connected to European markets, we aim to support recovery, create jobs, and strengthen resilience.”

Ambassador of the European Union to Ukraine, Katarina Mathernová said: “This project shows how we can help Ukraine’s economy grow even in challenging times. With support from the EU’s Ukraine Facility, we are proud to work with IFC to back investments that create jobs and strengthen local businesses. Astarta’s new plant is a great example of how working together delivers concrete results for Ukraine’s future.”

Alle Dorhout, Ambassador of the Kingdom of the Netherlands to Ukraine, said: “IFC’s Economic Resilience Action (ERA) Program delivers support to critical sectors during the Russian invasion, particularly agribusiness. The Netherlands is pleased to contribute to the construction of the country’s first soy protein concentrate plant in Ukraine. IFC’s investments in Ukraine are essential—especially during the war phase —to enable the critical recovery of the Ukrainian economy. International financial institutions, notably IFC as part of the World Bank Group, are crucial in this regard.”

Although Ukraine is a major producer of agricultural commodities, its exports remain heavily reliant on raw materials such as soybeans, which are vulnerable to global price fluctuations. Expanding exports of higher value-added products of deep processing like soy protein concentrate—pioneered in Ukraine by Astarta as an eco-friendly sustainable alternative to fishmeal in European aquaculture—is essential for Ukraine's long-term development. The country is well-positioned to tap into growing global demand for such products.

The project will support farmers by expanding the supplier base and increasing market purchases. The plant will also produce soybean molasses, a byproduct of production, for its own biogas needs. IFC has worked with Astarta throughout the investment process, providing advisory support to help assess global demand for soy protein concentrate and refine the company’s business plan.  

IFC, in partnership with the Czech government, will also support Astarta with conducting a market and feasibility study for compound feed production in Ukraine, and providing advice on local communities, youth and older employees, and facilitating the reintegration of veterans. The aim is to foster a more resilient workforce and healthier communities, crucial amid the country’s human capital and skills shortages intensified by Russia's invasion.

IFC’s ERA Program for Ukraine supports critical sectors such as agribusiness. Since February 2022, IFC has delivered $2.2 billion to support Ukraine's private sector, including $760 million in mobilization, through the program. The effort forms part of the World Bank Group's response package, which has assisted more than 15 million Ukrainians by helping businesses stay afloat and enabling the government to provide essential services, pay wages, keep schools and hospitals open, and carry out critical repairs.

The Economic Resilience Action (ERA) Program for Ukraine is an operational framework for IFC’s near-term investments and advisory work to assist the Ukrainian private sector following Russia’s invasion. The response package includes financing at IFC’s own risk and blended finance support from multiple development partners to mitigate risk. For more on IFC’s ERA Program for Ukraine see here.