Chelyabinsk Region and Rosselkhozbank decided to prolong their cooperation agreement by five years; all the papers to this extent were signed by Governor Petr Sumin and the bank’s chairman Yuri Trushin on March 20, 2007.

Mr. Trushin says the bank provided the region with two times more money than stated in their previous five-year arrangement; it invested about 3bn RUR in the South Ural agricultural development last year alone, mainly in the form of development loans to both large enterprises and small farms and in the form of mortgages.

Rosselkhozbank intends to invest at least 12bn RUR in Chelyabinsk Region within the next two years. According to Mr. Trushin, a few large equipment replacement projects involving poultry and stock-raising farms will be funded by the bank. In addition, the company will assist the region in the setting up of food markets, a food exchange with plenty of subsidiaries, and some slaughterhouses. Besides, some money is to be offered to agricultural producers so that they can buy sowing equipment, fuel, seeds, and fertilizers.

Petr Sumin states the new agreement is vital to the region’s agricultural success. ‘Our mutually beneficial cooperation helps to comply with the national project requirements and gives our rural areas a chance to develop and expand their production,’ he says.