German agricultural machinery manufacturer, CLAAS has signed a special investment contract with Russia which among other things gives the company official status as "Russian manufacturer" and therefore eligible for state subsidies.
Around 72mha of land is currently used for farming although it’s reported that 122mha is suitable and with the current policy of export substitution and bringing land back into production, the demand for combines and other machinery is high.
"The Russian agricultural sector has a truly promising future. This contract now makes state-of-the-art agricultural machinery affordable for Russian businesses", explains Lothar Kriszun, Spokesman of the CLAAS Executive Board.
Maybe so but whether expensive western machines fit that bill remains to be seen as domestic machinery producer, Rostselmash, sold out of their very capable and keenly priced combines earlier this year.