USAID ERA participates in the Government of Ukraine’s presentation of the Strategy for the Development of Border Infrastructure with the EU and Moldova

Modernization of the BCPs
27 November 2024

On November 22, representatives from USAID’s Economic Resilience Activity (ERA) attended the presentation of Ukraine’s Strategy for the Development of Border Infrastructure with the European Union (EU) and Moldova. The document, presented by the Ministry for Communities and Territories Development of Ukraine, outlines key actions and priorities through 2030.

Deputy Minister Serhii Derkach facilitated the event, which was also attended by Head of the Agency for Restoration Serhii Sukhomlyn, representatives of regional military administrations, the State Customs Service, the State Border Guard Service, as well as experts from the relevant directorates of the European Commission, USAID, the International Organization for Migration (IOM), the European Union (EU) Advisory Mission in Ukraine, and other local and international organizations.

“The full-scale Russian invasion has significantly altered Ukraine’s logistical routes. The blockade of ports and the suspension of air traffic have made road transport a vital element of our economic stability for both imports and exports. To adapt Ukraine’s border to meet the demands of transport and passenger flows, we have developed a clear strategy and operational plan. These documents include specific steps and measures to increase cargo throughput, prevent queues, and ensure comfort for those crossing the border. The key is the timely implementation of all planned measures so that businesses and citizens can experience tangible results. We expect our partners to consider this strategy in their projects as well. Its implementation will mark an important step toward integrating Ukraine into the European transport space,” noted Deputy Prime Minister for Ukraine’s Restoration and Minister for Communities and Territories Development, Oleksii Kuleba.

A key priority of the Strategy is increasing the capacity of border infrastructure. The document has already received approval from key government bodies and is expected to be adopted by the Government by the end of the year. Notably, its approval is one of the indicators of the Ukraine Facility Plan, with a completion deadline set for the end of 2024.

“The Strategy focuses on several key objectives. Primarily, it aims to enhance the capacity of border infrastructure through the reconstruction of existing border crossings and the construction of new ones, including access roads. Other goals include introducing joint controls with neighboring states, reducing wait times, and establishing networks of service areas. To achieve these goals, clear tasks and expected results have been defined. An essential part of the Strategy is monitoring its implementation, for which the document includes specific indicators,” stated Deputy Minister Serhii Derkach.

The Strategy covers the development of 42 border crossing points (BCPs) with all of Ukraine’s western neighboring countries, including the reconstruction and construction of BCPs with Poland (6), Slovakia (5), Romania (11), Hungary (6), and Moldova (14). It also plans for the construction of new BCPs, including Bila Tserkva/Sighetu Marmației, Bila Krynytsia/Climăuți, Ruska/Ulma, and Shepit/Izvoarele with Romania, and Velyka Palad/Nagyhódos, and Diyda/Beregdaráz with Hungary. The operational plan accompanying the Strategy outlines the necessary tasks and measures for border development, including cost estimates, funding sources, and implementation timelines for construction and upgrades.

“Developing border infrastructure is a crucial step toward strengthening Ukraine’s economy and its integration into the European Union. USAID ERA actively supports Ukraine’s efforts to modernize border crossing points, reduce wait times, and create favorable conditions for exports and cross-border movement as a whole,” emphasized Kirsten Pfeiffer, ERA Deputy Chief of Party. “We are proud to contribute to the implementation of this Strategy, which outlines clear steps to achieve its goals, and we will continue collaborating with partners to turn these plans into reality.” 

Between 2023-2026, USAID, through the Economic Resilience Activity (ERA), is dedicating $115 million to support the State Agency for Restoration and Development of Infrastructure of Ukraine (SARDI), Ukrainian Railways (UZ), and State Customs Services, to upgrade border crossing points (BCPs) to improve trade and export volumes.

USAID Improves UGTC Trade’s Grain Loading Operations at the Port

AGRI-Ukraine Export Logistics Support
26 November 2024

USAID, through its Economic Resilience Activity (ERA), delivered a mobile loader with feed hoppers to UGTC Trade. The equipment is installed in Odesa Oblast and will strengthen UGTC Trade’s grain and oilseed loading capabilities, shorten the logistics chain from producer to end recipient, and enable the company to offer better prices to agricultural producers.

The new mobile loader will support UGTC Trade to export approximately 30,000 tons of grain monthly. Before receiving the equipment, they either used third-party services to load the ships or sold products on “Free Carrier” (FCA) terms, handing grain to other companies with loading facilities that handled the port operations. This arrangement limited UGTC Trade’s ability to offer better prices to farmers, as they had to factor in the additional costs. Now, with the new USAID-provided equipment, UGTC Trade can independently handle loading operations and offer better prices to agricultural producers, creating a shorter logistics chain from producer to end recipient.

Despite Russia’s constant attacks on Odesa Oblast, UGTC Trade maintains stable operations.

Background: Assistance to agricultural producers and infrastructure companies is part of the Agriculture Resilience Initiative (AGRI) – Ukraine, implemented by the United States Agency for International Development (USAID). It aims to help Ukraine increase its capacity to produce, store, transport, and export grain.

UCAB and ERA Host a Hybrid Seminar at Global Grain Geneva 2024

AGRI-Ukraine Export Logistics Support
22 November 2024

On November 12, USAID Economic Resilience Activity (ERA) representative, Thomas O’Callaghan, Supply Chain and Export Logistics Lead, and Alex Lissitsa, President of the Ukrainian Agribusiness Club (UCAB), Chairman of the Board of IMC, facilitated the seminar, “Grain Exports: Expanding Sales Channels & New Opportunities from Ukraine,” at the Fastmarkets Global Grain Geneva 2024 conference.

At the seminar, 16 Ukrainian grain exporters pitched and shared their company profiles, their experiences on how the Ukrainian grain sector has adapted during the full-scale invasion, logistical disruptions, and economic instability. Ukraine is ready and willing to tackle new and existing markets with vigor with their improved logistical supply chains, as evidenced by the reputable growers and shippers in attendance at the conference and in Switzerland, highlighting their resiliency.

◾ Agrochemtechnology ◾ Agroprosperis GroupAGROTRADE GROUPAstarta-KyivGRAIN ALLIANCEContinental Farmers GroupEridonAgro Region ◾ Hermes-Trading ◾ IMC ◾ LNZ Group (UA)OKKO GROUP ◾ Risoil Ukraine ◾ ТАС АгроTradex Agri GroupUGTC TRADE

USAID ERA Supported Repair and Improvement Work Completed at Road Border Crossing Points with Moldova 

Modernization of the BCPs
21 November 2024

USAID’s Economic Resilience Activity (ERA) subcontractors have completed pavement repair and other improvement work at road border crossing points (BCPs) in Chernivtsi, Vinnytsia, and Odesa oblasts on Ukraine’s border with Moldova.  

At the Mamalyha and Rososhany BCPs the work involved repairing and applying traffic lane lines and pavement legends and markings, replacing traffic arms and stoppers, removing and replacing asphalt concrete, renovating slotted stormwater inlets, and painting the barrier fence and curbs. ERA had previously replaced LED lights and provided garbage containers, waste sorting bins, and road barricades at these BCPs.  

At the Mohyliv-Podilskyi and Starokozache BCPs, the subcontractors repaired pavements and applied pavement legends, repaired necessary electricals, and replaced traffic arms and stoppers. This followed ERA’s rapid upgrade support to the two BCPs, which included providing waste sorting bins and commodity scales and replacing road signs. Old prefabricated booths at Mohyliv-Podilskyi were also replaced with new permanent prefabricated structures.   

This work will enhance the state of the BCPs’ infrastructure, streamline the flow of goods and ensure smoother and more efficient operations at the BCPs to improve the overall experience for BCP users and boost the satisfaction of drivers and exporters. Enhancing the appearance and functionality of these BCPs is not only crucial for economic growth but also reflects Ukraine’s commitment to quality, efficiency, and international cooperation. Based on State Customs data, the average monthly cargo export from October 2023 to September 2024 was 42,550 tons at Mamalyha, 10,567 tons at Rososhany, 13,744 tons at Mohyliv-Podilskyi, and 34,171 tons at Starokozache BCP.  

Background: Between 2023-2026, USAID, through the Economic Resilience Activity (ERA), is dedicating $115 million to support the State Agency for Restoration and Development of Infrastructure of Ukraine (SARDI), Ukrainian Railways (UZ), and State Customs Services, to upgrade border crossing points (BCPs) to improve trade and export volumes. 

USAID ERA and Western Ukrainian Resource Center to work on optimizing railway border procedures

Grants
Modernization of the BCPs
20 November 2024

In October 2024, the NGO Western Ukrainian Resource Center, launched project activities under a grant from the USAID Economic Resilience Activity (USAID ERA) titled “Streamlining railway border procedures for faster grain exports to the EU”. This one-year grant project aims at harmonizing cross-border procedures to boost Ukraine’s rail exports of agricultural products, contributing to broader economic recovery.

The Western Ukrainian Resource Center will convene a cross-border group of Ukraine-EU experts to improve technical processes and customs procedures at the three pilot rail border crossing points (BCPs) of Mostyska, Chop, and Vadul Siret, on the borders with Poland, Hungary, and Romania respectively.

Project participants include representatives of the State Customs, Border Guard, Ukrainian Railways, and regional state administrations of Lviv, Zakarpattia and Chernivtsi Oblasts. They will contribute to analyzing the challenges and opportunities in the current processes at the three BCPs, and will propose how to improve technical and customs procedures, and increase the capacity of the personnel involved in cargo registration.

Background: Between 2023-2026, USAID, through the Economic Resilience Activity (ERA), is dedicating $115 million to support the State Agency for Restoration and Development of Infrastructure of Ukraine (SARDI), Ukrainian Railways (UZ), and State Customs Services, to upgrade border crossing points (BCPs) to improve grain trade and export volumes.

Ukrainian Companies Attend Global Grain Geneva 2024 to Promote Exports

AGRI-Ukraine Export Logistics Support
15 November 2024

On November 12-14, the USAID Economic Resilience Activity (ERA) with Ukrainian Agribusiness Club (UCAB) attended Fastmarkets Global Grain Geneva 2024 conference to promote Ukraine’s grain export capabilities and to seek new commercial opportunities for UCAB members on the global grain market. More than 800 participants from 500 companies and over 55 countries attended this prestigious event.

Importers, traders, brokers, shippers, policy makers and other sector stakeholders joined and used this international platform to expand networking opportunities, build relationships, gather valuable market insights and expand commercial activity in agricultural commodities markets.

UCAB’s booth enabled delegates from various countries within the supply chain to meet directly with 16 Ukrainian exporters and companies to discuss commercial sales opportunities for new and existing markets.

ERA’s Supply Chain and Export Logistics Lead, Thomas O’Callaghan, attended and noted, “Global Grain Geneva provides Ukrainian exporters a valuable opportunity to meet directly with key commercial decision makers in the global grain and oilseed trade. Over the course of three days, the UCAB stand facilitated commercial connectivity and face-to-face meetings with 82 international trading and shipping companies located in 27 countries across the world. This event not only gave Ukrainian exporters the chance to articulate in person the value of Ukrainian grain and oilseed products, it also gave international buyers a better understanding of the ongoing opportunities and value proposition to source directly from producers within Ukraine’s largest export sector”.