June 23, 2016

Cherkizovo Group and the Ministry of Economic Development of Russia signed a cooperation agreement to support and promote foreign trade at the St. Petersburg International Economic Forum (SPIEF) this month.

Its main purpose is to promote Cherkizovo Group's products in the export market through networking with the global players. Both parties agreed to further communicate and provide mutual support to each other.

Sergey Mikhailov, CEO of Cherkizovo Group commented: "Agricultural exports, including pork and poultry products, have every chance to become one of the key drivers of growth for the Russian agricultural sector. Nowadays, given the favorable market conditions, export has also become our top priority as we are about to make a huge leap forward. The Middle East, Africa and Southeast Asia are our first mission. We are actively collaborating with Russian government agencies and foreign government representatives from the countries in our top priority list to open their market to our local producers. The first contracts will be signed this year. I am sure this agreement with the Ministry of Economic Development will only help us efficiently carry out our goals."

A number of Cherkizovo Group's poultry enterprises have already received export licences to ship its products to UAE and Egypt. Nonetheless, there is an imperative need to continue this strategy through networking with potential foreign partners as the company carries out its ambitious plan of reengineering up to 10% of its poultry portfolio for export.

"We are witnessing significant growth in our non-resource-based exports," Alexey Ulyukaev, Russian Minister of Economic Development, said. "This growth is taking place amid Russia's shrinking trade volume with other countries. Overall non-resource-based export demonstrated a considerable growth of 12.5%. Russia is still a newcomer on the global meat market. Even though our enterprises produce high quality products that are very competitive, they still have a long way to go to become distinguished players in the global market. It is very important to coordinate our steps and I believe our joint-efforts will propel our mutual interests in the global market."

According to the signed agreement, Ministry of Economic Development of Russia will assist Cherkizovo Group in its foreign trade projects as well as provide opportunity to take part in intergovernmental panels on trade and economic cooperation and science and technology cooperation between Russia and other nations

The agreement was signed by Ulyukaev and Mikhailov.

- Cherkizovo