The interest of investing companies in agricultural business has significantly increased since the introduction of the Federal Law No.101-FZ of July 24, 2002 “On Agricultural Land Transactions”.
The reforming of agribusiness under the federal programs has been carried out for some years in Russia in order to make the investment climate more favourable.
It is necessary to attract the funds of both domestic and foreign investors for the development of agribusiness. But any domestic or foreign businessmen representing a large or small business will invest money only on condition that there is a functional remedial device protecting their economic interests. Thus, when investing in a new agricultural business or into recovering the financial solvency of operating agricultural enterprises one should pay extra attention to the issues of finalizing the ownership or long term lease of plots of agricultural land.
Russian and particularly foreign investors realize that the future of the business and of the whole capital investment project depends on competent processing of the papers, which evidence the legal status to use a plot of agricultural land.
Our company’s work priority is to guarantee the maximal legal protection for the clients who start business in Tsentralno-Chernozemny (Black Earth) Region. We aim to provide integrated support at the starting point of an investment project. Our assistance ranges from the structural development of the registered capital of an investing company to its acquisition of rights to use agricultural lands.
As of December 1, 2009 the overall area of agricultural lands that the investing companies have registered the right to, has totaled to 419,600 ha [1].
In 2004-2010 RATUMhas offered legal support to registering a right to a total of 229,900 ha of agricultural lands (it amounts to 54% of registered rights to land of investing companies).
The most significant start-up projects that our company supervised are the following:
Black Earth Farming (АGRО-INVEST Holding Company);
AlpcotAgro (AGROKULTURA Holding Company);
Myllyn Paras (ООО MYLLYN PARAS – KURSK).
[1] According to the report by the Russian Ministry of Agriculture on Agricultural Lands’ State and Land Use.
Investment proposal.pdf
Investment Proposal_Ratum_15052012(en).pdf
