Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

U.S.-Russia Poultry Venture

Russian and U.S. poultry industry representatives signed an agreement Wednesday to set up a joint venture to produce broilers near Moscow, the USA Poultry and Egg Export Council said in a statement.

The two sides in the joint venture, to be set up at Naro-Fominsk, will be the Russian holding company Elinar and the Council, representing 32 U.S. companies.

The venture plans production of 125,000 broilers per week within a year, reaching a maximum capacity of 250,000 broilers per week.

Total U.S. investment is expected to reach $12 million and the statement said this should be repaid within eight years.

The U.S. companies involved would then withdraw from the venture.

It is intended that the funds returned will be used to set up similar projects somewhere else within Russia.

"Much will follow from the development of this project, and future American investment in the Russian poultry sector will depend to a large extent on its success or failure," U.S. Ambassador James Collins said at the signing.

Russian Agriculture Minister Alexei Gordeyev said: "This project is evidence of the fact that the Russian economy is developing and is becoming increasingly integrated in the world economy.

"For Russia this project also has a big political significance."