Prospects for investment in agricultural pro,duction of Ukraine by oil-producing countries in the Middle East

Abstract

Goal. To assess the possibilities of cooperation between Ukraine and potential importers of domestic food based on investing in agricultural production of Ukraine and mutually beneficial cooperation. Methods. Theoretical methods of scientific research: analysis and synthesis, comparison, classification, and generalization. Results. The current state of use of irrigation systems in most cases is unsatisfactory, which requires the involvement of significant investment resources for their expansion, reconstruction, and modernization. In the case of restoration of efficient use of irrigated lands with crop specialization of agricultural production, the payback period of capital costs will be 3–4 years, for the creation of a bioenergy system — 2–3 years. Currently, about 0.5 million hectares are irrigated with the potential to restore and expand irrigation on an area of 3–3.5 million hectares. Their efficient use with the improvement of the industry structure and the achievement of high levels of profitability will successfully solve the problem of ensuring food security of any of the oil-producing countries of the Middle East based on taking into account the interests of the parties and mutual benefit. Conclusions. One of the options for cooperation with Saudi Arabia (Party — 1) and Ukraine (Party — 2) in the field of agriculture is considered as a series of successive stages of joint production and investment activities. The initial stage is the production of corn and winter wheat on the lands of NAAS in the irrigation zone of 20 thousand hectares. It predicts the following conditions and obligations: Saudi Arabia provides investment resources for the implementation of projects for the restoration and expansion of irrigation systems on an area of 20 thousand hectares with an estimated capital cost of 50 million USA dollars; Ukraine develops and implements irrigation restoration and expansion projects, provides agro-technological processes of grain production and supplies it to Saudi Arabia in fulfillment of investment conditions and obligations (250 thousand tons).