The Crimean occupation authorities intend to sell the Novy Svet plant of champagne wines

The occupation authorities of the Crimea intend to put up for sale 100% stake of the Novy Svet plant of champagne wines. This was announced by the "Minister of Property and Land Relations" of the region Anna Anokhina, - TASS informs.

According to her, the plant's asset was previously estimated at about $24 million.

"The Council of Ministers of the Republic of Crimea approved the inclusion of the sale of 100% of the shares of this facility (the Novy Svet plant) to the privatization plan, and it is advisable to use (...) the way of privatization - sale state property at auction", - Anokhina said.

According to the occupation authorities, the plant’s wear of technical equipment reaches 60%, it needs modernization, which cannot be carried out without the means of the investor.

"The plant is not a participant in the state program, it does not receive subsidies, it has its own limited financial capacity, including obtaining a loan. We believe that attracting a private investor will allow us to re-equip, master new technologies, and ensure growth (of production). The sale of shares will reduce the budget deficit of the Republic of Crimea", - said Deputy Minister of Agriculture of the peninsula Sergei Petelin.

According to him, the plant is to carry out both technical and technological modernization, which requires at least $6.9 million.

It is planned that the terms of the auction will stipulate the investor's obligation to carry out the modernization of the production to the amount of not less than $12 million, which will allow increasing production to 3 million bottles per year.

Currently, the production capacity is 1 million bottles of champagne and 600 thousand bottles of sparkling wines per year.

Also, the occupation authorities will present such conditions as the preservation of the profile of the enterprise, the technology of production of champagne wines and personnel of the Novy Svet.

The Novy Svet is an enterprise for the production of sparkling wine by the classical French bottle method of champagne, located in the village of Novy Svet in the south-east of the annexed Crimea.