Ekosem-Agrar reaches agreement in principle with Russian Agricultural Bank on continued financing

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Pic: Ekosem-Agrar

Ekosem-Agrar AG has announced the Russian Agricultural Bank (Rosselkhozbank, RSHB) has adopted resolutions on the continued financing of the Ekosem-Agrar Group.

Accordingly, the Russian Agricultural Bank will continue to provide the Ekosem-Agrar Group with existing credit lines for working capital.

The Russian Agricultural Bank has also confirmed no Ekosem-Agrar Group company is in default of payments to the Russian Agricultural Bank and therefore the Russian Agricultural Bank or RSHB-Finance has no intention to exercise any options in respect of shares in the Russian intermediate holding companies OOO EkoNiva-APK Holding, OOO EkoNiva-Produkty Pitanija and OOO EkoNiva-APK Chernozemje.

Also, the Russian Agricultural Bank has told the company it will provide the declarations required for the completion of the financial statements of Ekosem-Agrar AG for the financial year 2020.

The bank also decided to release financial resources for the completion of three dairy farms, as well as other projects that have a high level of completion.

Ekosem-Agrar Group and the Russian Agricultural Bank will also continue to hold talks with the aim of resuming the financing of a dairy processing plant in the Novosibirsk region with a capacity of 1,150 tonnes of raw milk per day.