Ukraine confirms state guarantee for $1.5B Chinese loan: it will be restructured
Photo: press service of the Cabinet of Ministers

The Cabinet of Ministers has confirmed the state guarantee for a loan of the State Food and Grain Corporation of Ukraine (SFGCU), originally obtained from the Export-Import Bank of China in 2012, according to Resolution №1114 of September 10.

In June 2025, it became known that the Cabinet of Ministers had requested the Verkhovna Rada to grant the government the right to temporarily suspend payments on the loan, which matures in 2030, to allow negotiations with the Chinese bank for more favorable repayment terms.

The new resolution specifies that the loan restructuring provides for deferral of principal and interest payments, as well as capitalization of accrued interest.

The government has authorized the Minister of Finance to sign documents confirming the state guarantee, reflecting the changes agreed in the debt restructuring transaction.

  • Originally, in 2012, the SFGCU and the Export-Import Bank of China agreed on a $1.5 billion loan to finance grain purchases for export under trade agreements with China. It was also planned that the Chinese side would later allocate another $1.5 billion for irrigation projects and grain logistics development.
  • Due to the SFGCU’s poor financial condition, the state had to assume responsibility for the loan repayment as its guarantor.