The government of Nizhny Novgorod region and AFG national on Wednesday signed an investment agreement for the expansion of the group companies of the agro-complex in Efremov and Shatkovsky areas, reported the correspondent of RBC-Nizhny Novgorod.

Signatures under the document were put by the Governor of Nizhny Novgorod region Valery Shantsev and the Chairman of the Board of Directors at AFG national Dmitry Arzhanov in the framework of the IV international business summit in Nizhny Novgorod.

"The project is very good, with great intensity, his prospects are impressive. In recent years, we have done a lot for development in the region agro-industrial complex. The signing of this agreement is especially important given the fact that we need to fulfill the food act", - said Valery Shantsev.

The head of the region expressed confidence that in the coming years, the Nizhny Novgorod region will not only be able to provide itself with agricultural products, but will also export it to other regions and countries.

"When the question arose about the need to implement the program of import substitution, we first drew attention to the Nizhny Novgorod region, as this investment attractive region and much is being done for the development of agriculture. With the support of the regional government we will develop the agro-industrial complex", - commented Arzhanov.

"AFG-national Nizhniy Novgorod", LLC including Agrosphere and LLC PC "Nizhny Novgorod Potato System" is implementing a project to grow potatoes in Dalnee Konstantinovo and Shatkovsky districts of the Nizhny Novgorod region on an area of over 500 ha. At the moment the company is expanding its production volumes.

Within three years it is planned to increase the production of table potatoes, carrots, beets and onions to 200 thousand tonnes of Products will be supplied in Federal and local retail outlet.

The project with an investment of 5 billion rubles. provides for the organization of irrigation systems in the area of 10 thousand hectares, the construction of 12 warehouses with a total capacity of 200 thousand tons and logistic center with capacity up to 700 tons of finished products per day.

By 2017 it is planned the construction and launch of rabbit-breeding complex with production capacity of one thousand tons of meat per year.

The project is planned within the framework of Federal and regional target programs and measures to support agribusiness in the vegetable industry: subsidies up to 50% of the capital of the reclamation costs, compensation of up to 20% of direct costs for the creation and upgrading of capital facilities for storage of vegetables, as well as reimbursement of part of capital expenditure on the construction of logistics centers.

The support of the government of the Nizhny Novgorod region is to compensate for the cost of connecting infrastructure to energy, providing tax benefits and ensuring the construction of roads for the project.

According to Arzhanova, the total investment in agro-industrial complex of Nizhniy Novgorod region will amount to 7.4 billion rubles.