German manufacturer of agricultural machinery signs contract with Russia at economic forum
A manufacturer of agricultural machinery from Germany signed a special investment agreement with the Russian government at the St. Petersburg Economic Forum.
The German CLAAS Group was the first foreign company to sign a special investment contract with Russia. The agreement was signed on Friday, June 17, at the St. Petersburg International Economic Forum. The German company received the status of the Russian manufacturer of agricultural equipment, and its products can now qualify for the Russian state subsidies for buyers of its products.
According to the contract, CLAAS has to invest around EUR 10 million to improve facilities located in Krasnodar. According to the Chairman of the Board of the German-Russian Chamber of Commerce, Matthias Schepp’s, this proves that the share of German business in Russia is still high. He made this statement in his interveiw with the dpa news agency.
The day before, Ernst and Young published a report stating that Germany has become a leader in direct investments to Russia. The number of Russian projects launched by Germany increased from 11 in 2014 to 36 in 2015, and the number of employees working for German businesses has increased from 350 to 2,000.