7/12/2004 INTERFAX - The board of directors of the European Bank forReconstruction and Development decided on Tuesday to provide Ukraine's ZAOChumak, a large producer of ketchup, mayonnaise, sunflower oil and cannedgoods, with a credit of $10 million and to open a revolving credit linefor $5 million, a source in the bank's Kyiv office said.

The company plans to use the credit to expand its oil production capacity,and also on marketing and brand development and also to buy sunflowerseeds.

The project will cost a total of $23.9 million and the company also plansto receive credits from Ukrainian banks.

ZAO Chumak was set up as a Ukrainian-Swedish joint venture in 1996.Norway's Orkla Foods acquired a 15% stake in the company in 1996.

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