Since 2003, IFC has made six investments in Myronivsky Hliboproduct Publichne AT (MHP), a leading vertically integrated poultry producer in Europe, with its primary operations in Ukraine.

In June 2018, CAO received a complaint from local community members in Olyanystya, Zaozerne, and Kleban villages, supported by Ukrainian and American civil society organizations. The complaint raised concerns about the impacts of dust, noise, and odors, as well as claims that the company’s operations cause air, water, and soil pollution and deplete water resources. Additional issues raised in the complaint include improper community consultation; lack of information disclosure; occupational health and safety concerns; and poor working conditions.

In addition to filing a complaint with CAO, the complainants submitted a complaint to the European Bank for Reconstruction and Development’s (EBRD) Project Complaint Mechanism. EBRD is also an investor in MHP.

In June 2018, CAO found the complaint eligible and began an assessment of the complaint. During the assessment, the complainants and the company agreed to engage in a CAO-facilitated dispute resolution process to resolve the issues raised in the complaint using a collaborative approach.

In January 2020, the parties signed a Joint Statement (Available in English and Ukrainian) outlining the efforts and progress made in the mediation process up to that date; the initiation of a joint fact-finding process on environmental and infrastructure impacts; and the implementation of community projects on road safety, transport, and water supply. In April 2021, the parties signed a second Joint Statement (Available in Ukrainian and English in the same file) detailing agreements reached regarding access to information and communication. Despite the efforts of all parties involved to resolve the issues raised in the complaint, a final agreement was not reached. 

In accordance with the CAO Policy, the case was transferred to CAO’s Compliance function for appraisal. CAO issued its Dispute Resolution Conclusion Report in April 2019 (Available in English and Ukrainian.)

In February 2025, CAO finalized its Compliance Appraisal Report, with a decision to initiate an investigation. CAO’s appraisal found indications of environmental, social, and safety harms from MHP’s operations, and potential IFC non-compliance in assessing and mitigating risks. Alleged harms to complainants were plausibly linked to these shortcomings, prompting a compliance investigation. CAO’s Compliance Appraisal Report is available in English and Ukrainian.