U.S.-based agricultural equipment producer AGCO on Tuesday set up a joint venture with a company controlled by billionaire Oleg Deripaska to make agricultural machinery in Russia.
AGCO and Russian Machines will have equal ownership and invest $100 million in the venture over the next three years, said a joint statement from the companies.
The companies signed the joint venture agreement in the presence of President Vladimir Putin during his visit to a farm owned by a separate business unit of Deripaska’s BasEl holding company.
The joint venture’s manufacturing facility, to be located in Golitsyno, near Moscow, is expected to begin operations in early 2014.
“The agricultural sector in Russia has significant potential but needs modernization and efficiency gains,” said Martin Richenhagen, AGCO chairman and CEO.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
![paiment methods](https://static.themoscowtimes.com/img/contribute/payment_icons.png)
Remind me later.