Russian billionaire Ziyavudin Magomedov’s Summa Group and Rusagro agribusiness controlled by Belgorod Region Senator Vadim Moshkovich have been cleared to bid in the privatization of the United Grain Company (UGC), a source familiar with the situation told Prime news agency on Saturday.

“Further negotiations will be held with Summa Group and Rusagro,” the source said.

The board of directors of the state-controlled UGC decided on Saturday to offer a new share issue through private subscription and mandated its investment adviser, Troika Dialog brokerage, to submit final proposals on the selection of investors by late May, the company said in a statement.

“Following the results of the meeting, the UGC board of directors agreed with the proposals by the investment adviser on a new share issue through closed subscription in favor of a strategic investor possessing experience in Russian agribusiness and which considers investment in UGC as a long-term undertaking,” the company said.

Rusagro and Summa declined to comment.