The Moscow office of Gide Loyrette Nouel acted as an advisor to OOO “Agropromyshlenny Complex DAMATE” (“DAMATE Agribusiness”) on setting up a joint venture with the Penza Region, Russia, on the production of turkey meat and beef.
DAMATE Agribusiness is itself a joint venture between Russian company Rusmolco and the Singaporean Company Olam International, which is an agricultural investment project unprecedented in scale, so the setting up a new joint venture is in line with the ambitious plans on agriculture development in the Penza Region.
The joint venture plans to construct and further develop the turkey and cattle production complex which will include incubation, feeding and growing facilities, a processing and packing plant, a combined feed plant and other necessary infrastructure.
Following setting up of this joint venture, the Penza Region should become the biggest producer of turkey meat and beef in Russia: it is predicted to produce 109.5 tonnes of meat and meat products, i.e. 1.5% of the total production of meat and meat products in the Russian Federation. The revenue from the development of related industries in the region is estimated at 9.8 billion Roubles.
Gide Loyrette Nouel advised the client on structuring the deal, participated in negotiations, and drafted the project documentation.
Boris Arkhipov, partner in the Moscow office of Gide Loyrette Nouel and head of the team of lawyers who acted on this project, said: “We were happy to act as advisor to such a dynamic Russian company which is not satisfied with its obvious achievements and keeps developing new agricultural areas. We hope that our experience in legal support of such kinds of transaction, including the industry in question, both on the Russian market and abroad, will be useful for the implementation of future projects”.
