The Russian Transport Ministry has given a green light for the reconstruction of the Volodarsk area in the Donetsk region – a region of Ukraine controlled by the Russian forces. Under the reconstruction program, the Russian authorities plan to emphasize the development of agriculture in the Donetsk region, Dina Sattarova, Director of the Unified Institute of Spatial Planning, was quoted in a government statement as saying.
It is understood that a part of the program is the construction of Russia's first feed-grade vitamin plant.
The plant is scheduled to be built near the village of Serhievka. In addition to vitamins, it will also manufacture premixes and bran.
The Russian government's plans come as a surprise to the Russian feed industry.
"The idea is extraordinary to put it mildly," commented a source in the Russian feed industry who wished not to be named. "A feed vitamin plant is a high-tech facility requiring advanced technologies and investments worth billions of rubles. No chance any investor would risk under the present consequences."
Russia captured only a part of the Donetsk region. Around 15% to 17% is still under the control of the Ukrainian forces, Russian President Vladimir Putin estimated during a March 16 meeting. Serhievka sits still rather close to the frontline, and the settlement reportedly suffered destruction during the fights of the past few years.
The feed industry source assumed that, given the military situation, the plan is more of a declaration of intent, and "nobody seriously considers building the feed additive plant near Donetsk now."
Even if the hostilities stop tomorrow, the source said, the wider Donetsk region suffers from a water shortage, and problems are seen with all parts of the infrastructure.
On the other hand, the source said, Mariupol shows that Russia is ready to invest heavily in the "new regions," and under certain circumstances, with tax breaks and other incentives, the region could start attracting investments.