In late 2013, the then president of Ukraine, Viktor Yanukovych, rejected a European Union association agreement tied to the $17 billion IMF loan, whose terms are only now being revealed. Instead, Yanukovych chose a Russian aid package worth $15 billion plus a discount on Russian natural gas. His decision was a major factor in the ensuing deadly protests that led to his ouster from office in February 2014 and the ongoing crisis.
According to the Oakland Institute, “Whereas Ukraine does not allow the use of genetically modified organisms (GMOs) in agriculture, Article 404 of the EU agreement, which relates to agriculture, includes a clause that has generally gone unnoticed: it indicates, among other things, that both parties will cooperate to extend the use of biotechnologies. There is no doubt that this provision meets the expectations of the agribusiness industry. As observed by Michael Cox, research director at the investment bank Piper Jaffray, ‘Ukraine and, to a wider extent, Eastern Europe, are among the most promising growth markets for farm-equipment giant Deere, as well as seed producers Monsanto and DuPont’.”
Ukrainian law bars farmers from growing GM crops. Long considered “the bread basket of Europe,” Ukraine’s rich black soil is ideal for growing grains, and in 2012 Ukrainian farmers harvested more than 20 million tonnes of corn.
Monsanto’s Investment
In May 2013, Monsanto announced plans to invest $140 million in a non-GMO corn seed plant in Ukraine, with Monsanto Ukraine spokesman Vitally Fechuk confirming that ‘We will be working with conventional seeds only” because “in Ukraine only conventional seeds are allowed for production and importation.”
But by November 2013, six large Ukrainian agriculture associations had prepared draft amendments to the law, pushing for “creating, testing, transportation and use of GMOs regarding the legalization of GM seeds.” [4] The president of the Ukrainian Grain Association, Volodymyr Klymenko, told a Nov. 5 press conference in Kiev that “We could mull over this issue for a long time, but we, jointly with the [agricultural] associations, have signed two letters to change the law on biosecurity, in which we proposed the legalization of the use of GM seeds, which had been tested in the United States for a long time, for our producers.” (Actually, GM seeds and GMOs have never undergone independent, long-term testing in the U.S.)
The agricultural associations’ draft amendments coincided with the terms of the EU association agreement and IMF/World Bank loan.
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