Investment in Russian hub to ship grain to China seen at $1 bln

BEIJING, Jun 24 (PRIME) -- Investments in a Russian grain hub in the Zabaikalsky Region, designed to ship grain to China are expected at U.S. $1.1 billion, Deputy Agriculture Minister Sergei Levin told reporters on Friday.

Deputy Prime Minister Dmitry Rogozin told reporters Monday that Russia may sign a memorandum on construction of the hub and grain supplies to China during a visit of President Vladimir Putin to the country on Saturday.

“The project of this terminal envisages transshipment of up to 8 million tonnes of grain. We will see how we can reach this level, there will be purchases of 2–3 million tonnes of grain at the initial stage of the terminal work,” Levin said.

According to the official, construction of the first stage will take about 18 months and must start by September 2016. Equipment for the terminal will arrive from China.

The yet-to-be-signed memorandum envisages creation of a logistic corridor of 30 units including a grain terminal and 29 elevators in various locations in Russia, Levin said.

He added that Russia is preparing a memorandum with Chinese food corporation COFCO on grain purchases via the terminal.

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