Tomsk Oblast signed a memorandum of cooperation with the Chinese-Russian Agricultural Development Company

The document discloses intent of the Chinese investor to implement until 2030 a number of agricultural investment projects worth 50 billion rubles in Tomsk Oblast.

Deputy governor of Tomsk Oblast for agricultural policy and natural resources Andrey Knorr and CEO of the Chinese-Russian Company for Agricultural Development Zhang Dinghong signed the memorandum of understanding and cooperation on October 9 in Moscow after the meeting of a subcommittee of the Russian-Chinese Commission to Prepare Regular Meetings of the Russian and Chinese Prime Ministers. 

The Chinese investor intends to build in Tomsk Oblast livestock and dairy production facilities with the total number of heads up to 100,000. The first stage of the project involves building a 2,500 heads farm in Kislovka village in 2015-2017.

The Chinese company also plans in the nearest future to participate in the construction of the fish-breeding facility Tomsk Oblast Aquabiocenter as well as vegetable greenhouse complexes in the villages of Asino and Kandinka. Plans for the long run include construction of a 50,000 tons per year powder milk factory and fodder factories with total output 300,000 tons per year. According to the terms of the memorandum the list of projects can be changed.

Tomsk Oblast authorities will provide full support to the investor in the implementation of its projects. Under the terms of mutual cooperation the parties will consider implementing a portfolio of projects as a model example of Russian-Chinese cooperation in the agricultural industry.

“Today, the Russian agricultural industry is facing lack of funding and borrowing opportunities. By bringing in a Chinese investor we are creating a fund for further implementation of projects in agriculture, particularly in the dairy sector,” commented Andrey Knorr after signing the memorandum. “Projects will be implemented in a number of formats – as new construction by the Chinese party and as joint ventures with local companies. This initiative will also help save many farms from insolvency.”

Commenting on a question why Tomsk Oblast, Zhang Dinghong noted that Tomsk Oblast has enough resources for successful business cooperation in livestock breeding.

“China will bring in its technology to increase productivity of the livestock breeding sector of Tomsk Oblast, which plays to the advantage of the region and Russia on the whole, but also of the joint venture with China.”

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