East Agri 2006 Annual Meeting Berlin 5 May

East. Agri 2006 Annual Meeting Berlin 5 May 2006 1

Who is Rabobank? • Rabobank is the largest financial service corporation in the Netherlands • Rabobank is the only non-Government AAA rated bank in the world • Rabobank has a food & agribusiness focus outside the Netherlands • Rabobank is founded on industry knowledge and awareness to maintain our understanding and credit integrity and ensure appropriate financial solutions are offered to clients Farm inputs Farm production Trade and distribution Food retail Processing Wholesale and trade Non food 2 Consumers Food service

Rabo Agri-Activities in CEE/CIS • Ownership based financing (Rabo Trading) in Poland, Russia, and Turkey • Strong position in Polish F&A market via BGZ Bank & Rabo Polska • Stock finance & Pre-export Finance in Kazakhstan (incl. EBRD program) • Pre-export Finance of local traders & financing of multinationals in Ukraine 3

Why we think Ukraine WRP development has stalled • Some parts of the law have indeed been implemented (Primary legislation has been implemented but not yet secondary legislation) • Therefore enforceability of pledged WRs is still not clear (weak Legal Opinion) • Certification of warehouses is done, introduction of new WRs, no more F 13 • But lack of strong government commitment • No Indemnity Fund (here is a role for Government + World Bank or other multilateral donors to capitalize the indemnity fund) • Grain market is dominated by Multinationals who in principle do not need WRs as security to attract finance (compare with Kazakhstan/Bulgaria) • Grain is stored for short periods only (due to humidity and quick exports) so less need for WRs • Local banks are not enthusiastic yet, so EBRD/USAID program less effective 4

Why we think WRP has become a success in Kazakhstan • Strong government/Mo. A backing in Kazakhstan • WRP suits the Kazakh grain market (long storage periods demand secure warehousing regime) • The sector is still dominated by local players (WR fits local players more than multinationals) • Also farmers are large/industrialized enough to obtain WR based finance from local banks • Strong backing EBRD through WR based financing via local banks (so WRs are widely used as security) • Strong support for Indemnity Fund by Government (funded by Mo. A and managed by Mo. A) • Legal opinions have confirmed out-of-court enforceability (banks very much like that) 5

Thanks for your attention! Adnan Mirzoyev Rabobank Adnan. Mirzoyev@Rabobank. com 6