7 February 2022

In June 2018, residents of the villages of Olyanytsya, Zaozerne, and Kleban submitted complaints to the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) on the environmental and social harm of MHP’s operations and requested dispute resolution for these problematic issues...

Local residents were concerned about MHP’s attitude towards communities: the company didn’t organise meaningful community consultations before building new farms or expanding the enterprise. Local residents felt pressured during the meetings and did not have an opportunity to express their fears freely. Other concerns were about MHP employees’ safety at work and MHP’s impacts on local residents...

During these three years, MHP has been able to actively build its image as a ‘green’ company that cares about people. But advertising in the media, funding for charitable foundations, the organising of festivals, and even ‘environmental’ awards do not help the environment and the local communities in Vinnytska oblast. The communities continue to worry about the stench of chicken manure; the destruction of houses in Olyanitsa; and the health problems people have linked to air, water and soil pollution.

The independent accountability mechanism of the EBRD has already presented a problem solving report, and the IFC’s mechanism will do so soon. Afterwards, the banks’ independent mechanisms should decide to close the complaint or proceed to plan B – compliance review. As part of the compliance review, the mechanisms will gather evidence and decide whether MHP projects have violated the banks’ environmental and social policies. If violations are proven, EBRD and IFC management will develop a plan to mitigate the damage, and the mechanisms will monitor its implementation...