One of the largest agricultural producers, the Singapore company Olam plans to resume the project of dairy farming in Russia $400 million writes About this on Tuesday, the newspaper "Kommersant" with reference to the co-owner and CEO of Olam Sunny Verghese.

As stated in Olam, this decision is primarily due to the fact that Prime Minister Dmitry Medvedev promised that the government debt to the farmers in the area of subsidies for reimbursement of expenses on investment loans will be closed. The Prime Minister reported this on Friday at a meeting on the development of animal husbandry, recalled his press Secretary Natalya Timakova. On Monday, October 20, this position has been confirmed, she said.

The total indebtedness of the state subsidies before Olam is about 300 million rubles, added Verghese.

According to the publication, as soon as the government will fulfill promises - will cover the debt to the company, as well as adopt a new state programme for the development of agriculture until 2020, providing for compensation of a part of the investment cost - Olam will be ready to start implementing the projects. Resuming work on projects Olam plans in two stages.

At first the company will invest about $200 million in the construction of new dairy farms in the Penza region in a joint venture with Russian dairy company Naum Babaev. It is planned that there will be a two dairy farms with a production capacity of 120 thousand tons of milk annually. The volume of investments in the farm will be about $180 million over the next two to three years, told Verghese. Another $20 million Olam to invest in the construction of an Elevator with a capacity of 50 thousand tons of simultaneous storage. Funds for the implementation of the Penza projects 60% will be credit. The holding plans to take credit in the agricultural Bank, the borrower which he is already, another 40% will be equity. In the second stage, Olam will be ready to consider the possibility to invest about $200 million of the Funds will be spent on the development of dairy farming and port infrastructure, said the CEO of Olam. In particular, we are talking about the expansion of livestock projects in the Penza region and the plans for the purchase or construction of the grain terminal in the black sea (now Olam owned grain terminal in Azov).