Trans-Baikal signs 49-year agricultural land lease deal with Chinese investors

Trans Baikal

Authorities in Russia’s Trans-Baikal region in eastern Siberia have granted China’s Zoje Resources Investment and  its Huae Sinban subsidiary a 49-year land lease for the development of modern agriculture and livestock industries on 115,000 hectares of its uncultivated land. In return, the Chinese company has agreed to invest $440m in local agribusiness development.
Zoje Resources – whose core business is the manufacture of industrial sewing machines and which is listed on the Shenzhen Stock Exchange –  said in a statement that the move was a response to the Chinese government’s call for development in countries along the Silk Road linking China to Europe. It plans to use 50,000 undeveloped hectares of grazing land and 65,000 hectares of uncultivated land to grow vegetables, wheat and other agricultural products. It will also develop animal husbandry in four areas of the region,  on the understanding that the Transbaikal regional government will offer up a further 85,000 hectares of undeveloped land once the initial lease come up for renewal.