EBRD and investment

Ukraine, the world's top barley exporter and a major wheat supplier, benefitted from around 170 million euros ($236.1 million) in EBRD investment in agricultural projects in 2010. "I estimate that last year we could have financed an additional 50-100 million euros in the Ukraine if the political conditions were better," Mettetal said. The EBRD is the largest single investor in agribusiness in Eastern Europe and Central Asia and invested around 800 million euros in the region in 2010.

Earlier this year the EBRD brought together Ukrainian government officials and private sector investors to discuss the challenges to developing agriculture in the region and address growing frustration from its private sector clients.

"We want to continue to support policy dialogue with the government, providing them with instruments such as pre-harvest financing as alternative market-oriented ways to prevent systematic state intervention," Mettetal said.

The draft law for the state grain export monopoly has already raised concerns among traders, who have invested millions of dollars in Ukrainian grain export terminals, silos and local farms.

"Russia, Ukraine and Kazakhstan could export half of the world's grain export needs, including 60 percent of the world's wheat needs. The potential is enormous," Mettetal said. "Without private sector investment they will never be able to achieve progress."