OREANDA-NEWS. June 10, 2013. ABH Miratorg (the largest Russian investor in the agricultural industry, with over RUB 90 bln of investment) and Sberbank CIB have signed the Russian agricultural industry’s first ever 15-year loan agreement. A total of RUB 1 bln of financing was provided under the agreement.

It was possible to sign this agreement because at the end of 2012, the Decree of the Russian Government “On the approval of the Rules for providing and allocating subsidies from the federal budget of territorial entities of the Russian Federation in order to reimburse expenses for paying interest on loans received from Russian credit organisations and financing received from agricultural consumer credit co-operatives” came into effect. The Decree provides for increasing the credit period from eight to fifteen years for financing that is subject to subsidised interest rates.

ABH Miratorg will invest the funds provided under the agreement in developing its project for creating high-yielding breeds of beef cattle in the Kaliningrad Region. Currently the Holding Company has three farms in the aforementioned region and has imported 12,000 head of Aberdeen Angus beef cattle from the U.S.

“By increasing subsidised loan periods the government has taken an effective step that will help to revive the Russian cattle breeding industry. The fact that agricultural sector enterprises can now procure 15-year subsidised loans allows us to feel more confident when carrying out major projects with long production cycles, such as the projects that Miratorg is currently working on. We are pleased that together with Sberbank CIB we are able to continue developing the Russian agricultural industry and effectively bring our ambitious projects to fruition,” commented Viktor Linnik, President of ABH Miratorg.

“Thanks to ABH Miratorg’s extensive experience in implementing complex, high-tech agriculture projects and its highly competent shareholders and management we were able to provide long-term financing for their new and effective project which is of importance to the Russian economy,” remarked Igor Serov, Head of the Corporate Clients Division and Managing Director at Sberbank CIB.

Information for editors:

ABH Miratorg

Founded in 1995, Miratorg Agribusiness Holding is one of the Russian market’s leading producers and suppliers of meat.

The enterprises affiliated with the Holding perform the whole production cycle from the field to the shop counter. This organization structure makes it possible for Miratorg Agribusiness Holding to be independent of situation in various raw materials markets, changes in prices for certain raw materials, to optimize production costs and minimize possible risks. The vertical integration allows Miratorg Agribusiness Holding to exercise product quality control and ensure optimum efficiency in all production stages.

Active use of the best global experience and innovative technologies as well as high qualification of the Holding management and staff contribute to high production and financial performance.

In terms of performance the business units of Miratorg Agribusiness Holding are equal to European enterprises: their KPIs are on a level with those of the world’s leading producers and far exceed average Russian ones.

All the enterprises of Miratorg Agribusiness Holding conform to international environmental standards. The Holding respects the environment, plays an active role in the social life of its operating regions and supports the principles of ethical business.