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Rusagro may drop greenhouse project if subsidies are cut

Russian farming conglomerate Rusagro could drop plans to launch a $300 million greenhouse business if the government shrinks subsidies, the firm's chief executive told Reuters on Friday.

Rusagro, a major pork, fats and sugar producer, this year unveiled plans for a greenhouse project in the central Tambov region, with the aim of producing vegetables even during Russia's harsh winters, so reducing dependence on imported food.

"There are projects which we will implement in any case - with or without state support. But not greenhouses," Rusagro Chief Executive Maxim Basov said in an interview at the Reuters Russia Investment Summit.

The government, struggling to bridge budget gaps due to weak oil prices, has yet to determine how much cash it will make available for subsidizing greenhouse projects.

Amid the uncertainty, which Basov said could last through spring next year, Rusagro has delayed greenhouse construction, having previously planned to invest several billion rubles in 2016, including some of the proceeds from its April share sale.

Read more at Reuters
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