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Russia's Pava to start Gulf farmland roadshow in Oct

*PAVA offers its shares to Gulf investors for food supplies

*PAVA to start road show to UAE and Saudi in October

DUBAI, Sept 15 (Reuters) - Russian grain processing firm PAVA AKHA.MM, which plans to offer access to much-sought after Russian farmland by way of an equity stake in the firm, said on Tuesday it will meet Gulf investors in an October roadshow.

The move sidesteps Russian law which prevents foreign investors from owning farmland and helps Gulf investors secure food supplies.

Galina Balaenkova, PAVA’s director for international business development, said the company had scheduled a trip to Saudi Arabia and the United Arab Emirates to meet investors.

PAVA, the first Russian grain processing firm to float on the stock market, will offer the chance to invest in 500,000 hectares (1.24 million acres) to Gulf Arabs.

“Gulf investors continue to take keen interest in agricultural investment overseas, which falls in line with the government course,” Balaenkova said in a statement.

“It is a vital issue due to scarcity of own resources, while the growing world population is driving grains demand and food prices are hitting new highs. On that score, there are strong mutual advantages for the proposed partnership.”

Gulf countries, mainly reliant on food imports, have ramped up efforts over the last year to buy land in developing nations ranging from Pakistan to the Philippines and Ethiopia.

The land in Russia will be used to produce grains including wheat, barley, rye and sunflower seeds, but could grow fruit and vegetables in the future.

In May, PAVA said it planned to sell shares through private placements of up to 40 percent of shares in Russian Agricultural Division (RAD), the PAVA subsidiary responsible for land assets. [ID:nL668674]

It is pursuing a tenfold increase in grain production by restoring vast tracts of fallow Siberian land slightly larger than the emirate of Dubai.

The company produced over 30,000 tonnes of grain last year. It plans to double output this year and reach over 300,000 tonnes in 2010. (Reporting by Amena Bakr; Editing by Peter Blackburn)

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