MV Cargo has signed a share purchase agreement with Cargill to build a grain terminal worth about $100m in Yuzhni, Ukraine.

The latest deal follows the memorandum of cooperation signed between Cargill, MV Cargo and Ukraine’s Sea Ports Authority in August 2015.

Under the agreement, the port authority agreed to dredge the water area adjacent to the new grain terminal down to 16m that will help the terminal handle large vessels having deadweight of up to 100,000 metric tonnes.

Cargill head of grains and oilseeds business in Europe Andreas Rickmers said: “Through this investment Ukraine’s port infrastructure will be expanded and will provide greater efficiencies to connect Ukraine’s surplus agricultural crops with the parts of the world demanding more food.

“This new port will benefit Ukrainian farmers, the overall economy and global food security. It will add to our footprint of port facilities in the Black Sea region and confirms our intention to keep investing in Ukraine’s agricultural sector.”

Construction of the facility is expected to commence this month and will be completed by early 2018.

Andrey Stavnitser, on behalf of MV Cargo, added: "We expect the project to generate over UAH300m in tax payments annually and to create employment for around 350 people."