Greed: Ukraine Accepts USAID Taxpayer Borrowed Grant For Profitable Pet Food Company- To Purchase Equipment From Ukraine. And President Zelensky Wonders Why U.S. Taxpayer Support Is Wavering? 

Another Example Of Greed: Ukraine Accepts USAID Taxpayer Borrowed Grant For Profitable Pet Food Company- To Purchase Equipment From Ukraine. 

Another Decision By Government Of Ukraine That Further Infuriates Incoming Trump-Vance Administration. 

Why Would A Profitable Ukraine-Based Company Believe This Is An Appropriate Use Of United States Taxpayer Borrowed Funding?  Where Is The Common Sense?  Management Views Free Money From United States Taxpayers As Lottery Winnings. 

And The Government Of Ukraine Wonders Why Support By United States Members Of Congress And United States Taxpayers Continues To Decrease.  Self-Inflicted Injuries.   

Ukraine Business News
Kyiv, Ukraine
20 January 2025

A USAID grant helps the largest Ukrainian pet food manufacturer to increase its production capacity by 22%. With support from the USAID Competitive Economy Program in Ukraine, the global, family-owned Kormotech company plans to increase its dry feed production in Ukraine from 45,000 to 55,000 tons per year (+22%), creating an additional 30 jobs. With the USAID grant, Kormotech will purchase loading and packaging equipment and modernize its packaging lines. The company also reported that it ended last year with a turnover of $152M and increased its share of export sales abroad to 31% of total sales. The sales ratio abroad and in Ukraine is now 31% to 69% in tons, respectively. Kormotech brands grew most dynamically compared to last year's sales volume in the markets of Romania (+35%), Poland (+11%), and Moldova (+11%). Last year, the company signed contracts with partners from Malaysia, launched sales in Finland, and is actively developing in the markets of Spain and Italy, expanding its presence to 44 countries worldwide. 

From Kormotech
Kyiv, Ukraine

The grant facilitates procuring loading and packaging equipment from Ukrainian manufacturers and modernizing existing packaging lines. 

"This grant for medium and large enterprises is an opportunity to strengthen our export capabilities by acquiring Ukrainian-made equipment," said Igor Paranyak, Chief Operating Officer at Kormotech. "The support from the USAID Competitive Economy Program in Ukraine will partially cover the costs of new loading equipment and a state-of-the-art packaging machine for dry food production. Additionally, it will support purchasing a data-printing machine and upgrading another packaging line." 

  • The USAID Competitive Economy Program in Ukraine supports businesses in enhancing their competitiveness in both domestic and international markets. The program fosters a simplified and transparent business environment and helps Ukrainian companies access global trade opportunities. 

Last year, Kormotech reported a turnover of $152 million and increased its export share to 31% of total sales. The current sales distribution by volume is 31% in export markets and 69% in the domestic market. 

The company demonstrated significant growth in key export markets, including Romania (+35%), Poland (+11%), and Moldova (+11%). Kormotech also expanded its global footprint by entering Malaysia and Finland while strengthening operations in Spain and Italy, increasing its presence in 44 countries. Domestically, the company retained its leadership position in the Ukrainian market. 

With the support of the USAID grant, Kormotech plans to expand the production capacity of its Ukrainian dry food plant from 45,000 tons to 55,000 tons annually. This strategic investment will support job creation and bolster the company’s export capabilities. 

For the Trump-Vance Administration (2025-2029), the decision by the Biden-Harris Administration (2021-2025) to direct United States taxpayer borrowed funding to an already profitable pet food company located in Ukraine to purchase equipment manufactured in Ukraine rather than equipment from manufacturers in the United States is another reason for criticism of a) decisions by administrators within USAID and b) why the government of Ukraine would permit such a grant knowing that it has nothing to do with and adds nothing of value to the military engagements by the armed forces of the Russian Federation with the armed forces of Ukraine.   

For The White House, another example of the arrogance of the government of Ukraine in its abuse of the generosity of United States taxpayers. 

The Trump-Vance Administration decision process will be impacted by decisions implemented by the Biden-Harris Administration that were believed to have not been a productive use of taxpayer funds.  For example:  

  • Borrowing US$230 million for the United States Agency for International Development (USAID) to assist Ukraine-based companies to “meet EU regulations” and “export more of their products and services into Europe”  

  • Borrowing US$225 Million to “speed up the transportation of Ukrainian goods to the EU” 

  • Borrowing for “Partnership Fund for a Resilient Ukraine (PFRU)’s financing partners and other distinguished guests participated in the master class on preparing traditional dish of one of Ukraine’s ethnic groups… Next week we will reveal what kind of dish our financing partners were cooking, so stay tuned😉”  

The Trump-Vance Administration will also be asking why the government of Ukraine did not refuse United States taxpayer borrowed funds to produce a cooking show and to assist Ukraine-based companies’ engagement with EU-member countries.  

  • European Union (EU): Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.   

From an increasing number of Members of the United States Congress, the government of Ukraine took advantage of the generosity of United States taxpayers.  

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

LINKS To Related Analyses  

Trump-Vance Administration May Not Pay Turkiye’s Karpowership To Provide Electricity To Ukraine. Does It Pass The “Cooking Show” Appropriate Funding Test? Ukraine Should Say No Thank You. 12/23/24

Ukraine Insanity: U.S. Taxpayers Borrowing To Fund Cooking Show?  Baked Goods More Important Than Ammunition? Syrniki More Important Than 155 MM Shells? For The White House, This Is Sound Policy? 23 June 2024   

USAID Gives US$455 Million Reasons For Members Of Congress To Reject Portions Of US Taxpayer Borrowing For Ukraine. They Ask Why U.S. Taxpayers Should Help European Union Taxpayers Spend Less? 6 December 2023 

Previous
Previous

Zelensky Wants 200,000 U.S. And European Peacekeepers In Ukraine.  Cost Projection US$153 Million Per Day, US$4.6 Billion Per Month, US$55.2 Billion Per Year. Who Will Pay? President Trump? 

Next
Next

UK Government Pledges US$306 Billion To Ukraine.  In Totality, Represents 19% Of 2024 UK Budget, 10% Of UK 2024 National Debt, 10% Of UK 2024 GDP. Sensible For UK Taxpayers?