PRESS: Son of tycoon Abramovich to build large greenhouse in Russia

MOSCOW, Aug 24 (PRIME) -- The Belgorod Region has approved construction of one of Russia’s largest greenhouse project of the Greenhouse company owned by Arkady Abramovich, son of tycoon Roman Abramovich, business daily Vedomosti reported Wednesday citing a statement of the government and a source close to it.

The first, 5.93 billion ruble stage includes construction of 24 hectares of greenhouses until the end of 2017, which will allow the company to produce 19,300 tonnes of vegetables per year. Later, the facilities will be expanded to 108 hectares with projected capacity of 95,000 tonnes, a representative of the region’s development corporation, which oversees the project told the business daily.

Mikhail Glushkov, executive director of the Russian food and vegetable union, told Vedomosti that the project’s total cost may be estimated at 20–25 billion rubles, and it may break even later than the standard seven to eight years as costs for heating and lighting will be higher in the Belgorod Region than in the south.

The government has already rented 191 hectares with utilities to Greenhouse for 49 years, and the company may later buy the land, the development corporation’s representative added.

A representative of Arkady Abramovich and Greenhouse declined to comment.

Ilya Gamov, director for marketing and sales at Greenhouse Growth Technology, told the business daily that consumer demand for greenhouse vegetables has increased and was supported by counter-sanctions against European countries and Turkey. The government also provides significant support to greenhouse projects and reimburses 20% of their capital expenditures.

(64.7684 rubles – U.S. $1)

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