Russian Direct Investment Fund, Israeli LR Group to invest up to $100 mln in dairy production in Russia
The Russian Direct Investment Fund (RDIF) and Israeli LR Group agreed on joint investments in dairy farming and milk processing in Russia.The volume of investments will reach up to $100 mln, according to a joint press release of the companies.
"During the first phase, joint investments by RDIF and LR Group will total $100 mln, and the parties are already analyzing the most promising regional projects," the press release said.
"We will focus our joint search for attractive investment opportunities in the dairy sector, an area in which many of RDIF’s international partners have shown interest. The efficiency of the domestic agribusiness will be significantly improved by the participation of our Israeli partners and through the use of innovative technologies and best global practices," Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF) commented on the decision.
"Today, the Russian government is providing unprecedented financial support for the development of the dairy sector. Israel is a recognized world leader in the dairy industry. Adaptation of the best technologies and creation of vertically integrated regional dairy clusters will significantly increase milk production. We understand the importance of this work to ensure Russia"s food security and appreciate the professional experience of RDIF in international projects," Ami Lustig, CEO of LR Group Israel, said.
RDIFis Russia"s sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside international financial and strategic investors. RDIF’s management company is based in Moscow.
Since 1985, LR Group has been implementing turnkey projects. The Group employs more than 3,000 people in different regions of the world and has already implemented more than 400 successful projects with the total value of more than $1 bln.