London, 11 December 1996 (RFE/RL) -- A subsidiary of the giant British-based confectionery firm, Cadbury Schweppes, is building a new factory between St Petersburg and Novgorod to serve the chocolate consumer market in Russia.
To finance its completion, the European Bank for Reconstruction and Development (EBRD) is extending a $70 million loan to the firm, called Cadbury ZAO.
One third of this sum has been syndicated to a group of international banks, including Citibank and Credit Suisse.
Hans Christian Jacobsen, director of the EBRD's agribusiness team, said: "Russia is currently the third largest chocolate-maker in Europe.
"By setting up a manufacturing site in Russia, Cadbury will have a strong transition impact on the local economy, not only in terms of skills and technology transfer, but also within the retail industry itself."
The factory in the Novgorod oblast will produce Cadbury's traditional products, but new brands will be introduced to cater for local tastes.
As part of the $150 million project, Cadbury ZAO is to lease up to seven warehouses near major Russian distribution centers.