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Ukrainian agriculture: Building wartime resilience, preparing for post-war growth

Ukrainian agriculture: 

Building wartime resilience, preparing for post-war growth


A reliable, efficient and secure agriculture sector is essential, particularly during wartime.

But in this large and diverse country, the agriculture sector is facing significant challenges: access to international market has been disrupted by port blockades, irrigated land has been lost due to security risks and southern regions are experiencing the effects of climate change.

EFSE’s Ukraine sub-fund invested €8 million – converted to Ukrainian Hryvna – with Agroprosperis Bank (AP Bank) to provide much-needed long-term support for agriculture MSME clients. This investment is about improving efficiency, productivity and profitability. More than that, it’s about ensuring the survival and future growth of a critical sector. As Ukraine agriculture specialist Vitaliy Ivanchenko explains, “For many farmers, the choice was simple: adapt or disappear.

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Impact Spotlight

VivaPlus  is a potato and grains producer that supplies markets and the food-processing industry, with its products used to make potato chips and starch. The farm is located in Nizhyn, Chernihiv oblast – both a major agricultural region and vulnerable to security risks given its proximity to the Russian border.  
 

We spoke to Yuriy Yatsyuta, owner and manager, about remaining a resilient business in difficult times. He told us a story of constant unpredictability and adaptation, where he is more of a manager dealing with several crises at once, than a farmer growing and selling crops.    
 

The war has presented constant operational risks: infrastructure can be destroyed, shipments can be disrupted or attacked, labour can be scarce due to mobilisation and input costs remain volatile. Yuriy describes it as “living on a volcano,” where operations can collapse overnight.   
 

In response to these risks, VivaPlus is in the process of transforming its operations. Previously dependent on third-party providers, the farm is investing in its own transport, storage and grain-drying capabilities. Due to unreliable electricity supply, Yuriy is also strengthening energy independence by installing generators and developing a small solar energy project. These projects are not luxuries, they are essential.   
 

Accessing finance to manage these changes, however, has been difficult. And when finance is available, it is expensive.  
 

Vital longer-term, local-currency financing provided by EFSE USF and AP Bank has allowed Yuriy to modernise. This financing  has made investments in modern and efficient equipment possible. It effectively supported the farm's supply chains by building out post-harvest infrastructure, operational independence and stability in wartime conditions, setting the stage for sustained longer-term productivity. Specific purchases have included modern tractors, storage units and newly installed drying equipment. The investment also allowed the farm to save costs and maintain jobs.

 

As 2026 continues, Yuriy is cautiously optimistic. Uncertainty may be high, but he believes that with continued adaptation, access to financing and a focus on operational independence, his farm can remain stable and continue to grow long after the war is over. 

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EFSE and AP Bank have provided a huge amount of support. They have allowed us to rebuild, maintain jobs and, most importantly, contribute to the development and future of Ukraine. 

Yuriy Yatsyuta, Owner and Director of VivaPlus

Our investment

Due to the war, millions of hectares of farmland can no longer be used for cultivation. Occupation, mines, land contamination, asset destruction, labour shortages, and trade disruption have blighted this essential regional – and global – sector, with total recovery and reconstruction needs estimated at $ 55.5 billion.¹ 
 

Climate change has also been an issue – rising temperatures, more prevalent droughts and climate hazards, such as spring frosts are all affecting yields and productivity. 
 

Still, farmers demonstrate inspiring adaptability. Even in the face of war, farms continue to invest in modern, efficient agricultural tools, such as irrigation, while upgrading logistics and infrastructure, and adapting to evolving market needs. They are also helping rebuild local communities by hiring internally displaced persons (IDPs), veterans, and other vulnerable groups.  
 

Support from financial institutions is essential in these endeavours. 
 

Our €8 million local-currency investment with AP Bank builds on the work we have been doing in financing the resilience and inclusive growth of the agriculture sector across the country – both before and during the war. Since the inception of the Ukraine Sub-Fund, more than 71% of all sub-loans have been disbursed to the agriculture sector. 
 

¹ Ukraine 5th Rapid Damage and Needs Assessment (RDNA5), 2026 

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Support beyond the investment

 

The EUR 8 million investment provided to AP Bank is complemented by financing‑linked grants for MSMEs, equivalent to 10% of the investment. 

Financing-linked grants are another form of investment in farms, alongside traditional loans. They allow farms – including those heavily affected by the war - to better cope with reduced liquidity and collateral, strengthen bankability amid market distortions, and improve resilience and competitiveness.

We are also supporting AP Bank with dedicated advisory & capacity building services to expand its digital offering and better support its MSME clients under wartime conditions, with access to physical banking services often constrained.  

Impact of our investment

As of December 2025, since the beginning of our partnership in 2018, AP Bank has facilitated over 400 sub-loans worth €38 million to agricultural MSMEs. 
 

Given the importance of farming to Ukraine and AP Bank’s specialized role in agriculture financing, this is a vital investment for the EFSE USF. The Bank is committed to serving the Fund’s target group, including, the lower-end, resource-constrained enterprises that are largely underserved by most Ukrainian banks. 
 

From our newest EUR 8 million investment, we expect to see 320 sub-loans disbursed to meet the longer-term financing needs of agricultural MSMEs. Our combined loan and grant funding will support the restoration of productive assets, help retain employees, and contribute to relocation and adaptation where needed.  

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Agriculture is Ukraine's largest export sector. It's the backbone of the country's economy. The choice for many farmers is clear: adapt or disappear.

 

Vitaliy Ivanchenko - Agriculture Expert Ukraine