Cadbury A.O.

Cadbury Russia Limited invested $77 million to set up two companies to manufacture, market, and distribute chocolate and sugar confectionery products in Russia. MIGA covered this equity investment for $69.3 million, which includes $19.3 million in reinsurance by the Export Credits Guarantee Department of the United Kingdom. MIGA will cover the company against the risks of expropriation and war and civil disturbance.

The project, Cadbury A.O., is a joint venture between Cadbury Schweppes, P.l.c., of the United Kingdom and Silbury Enterprises, Ltd., a private, Canadian-owned U.K. company. The EBRD is also participating in the project financing.

The project will make an important contribution to Russia's economic development. Located in the Chudovo region, near the town of Novgorod, it will help strengthen and diversify the predominantly agricultural regional economy. By creating approximately 1,640 new jobs, the project will be a major employer in the region. Local businesses will benefit because substantial material and services will be sourced locally and a significant demand for packaging products will be created. The project will pay an estimated $14 million in taxes annually.