Depsona A.O.

MIGA insured two Italian firms for their investments in the establishment of a fruit processing facility in Russia. MIGA guarantees cover Alimenta's equity and loan guaranty to the project for $4.1 million in insurance against the risks of expropriation and war and civil disturbance. A separate $0.9 million MIGA guarantee covers CAS's $1 million equity investment against the same risks.

Depsona A.O., the project enterprise, will produce apple and carrot juice fruit concentrate. The fresh juices and concentrates will be sold on the domestic Russian market; the concentrates also will be exported to Europe and the United States. Depsona will be located in Tula, a major apple-producing region.

The project is a joint venture among five parties: Alimenta, S.p.A. (an Italian agro-industrial engineering firm),CAS, S.p.A. (one of Europe's principal producers of apple juice concentrate), Simest (an Italian government investment agency), IFC, and a local agricultural cooperative. A substantial portion of the region's fruit and vegetable production is currently being wasted because of insufficient local storage facilities and inadequate distribution networks. Depsona will purchase and process damaged or otherwise unacceptable fruits and vegetables that would not be exported or utilized on the local market. The project will create about 100 local jobs.