OREANDA-NEWS. On 1 February 2008 was announced, that IFC, a member of the World Bank Group, is helping Russia’s Sodrugestvo Group, the largest manufacturer and distributor of soybean meal and other animal nutrition products in the CIS countries, expand its operations and improve its port facilities.  

IFC’s financing of $50 million in equity and $50 million in long-term debt will help Sodrugestvo complete a specialized agricultural commodities port as well as expand its production of animal feed by building and operating soybean and rapeseed processing plants in the Kaliningrad region. As a partner and shareholder, IFC will also advise Sodrugestvo on commercial, technical, environmental, and food safety issues and help the company implement best practices in corporate governance.

The new port will alleviate infrastructure bottlenecks at commercial ports that handle imported agricultural products and increase access to quality port services for other Russian agricultural commodity traders. With the new processing plants, Sodrugestvo will increase the supply of quality animal nutrition products in Russia to support the country’s rapidly expanding livestock industry.

“We are happy to see IFC as our new shareholder and financier.  This strategic partnership is a recognition of our company and growth strategy. It will add momentum to our development and support our commitment to best international standards of doing business” – said Alexander Lutsenko, Chairman of the Board of Directors and CEO of Sodrugestvo Group.

“IFC is proud to partner with Sodrugestvo. The company’s expanded operations generate 600 new jobs in the Kaliningrad region, create a stable demand for locally grown rapeseed, and support Russia’s dynamically growing poultry and pork sectors. Sodrugestvo’s commitment to local and international environmental, food safety, and corporate governance standards will set a strong example to the rest of the industry,” said Oscar Chemerinski, Director of IFC’s Agribusiness Department.