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VEB.RF and En+ Group Sign Strategic Partnership Memorandum on Baikalsk Development

19 january 2021 года
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VEB.RF and En+ Group have entered into a memorandum of strategic partnership to promote socio-economic development in the town of Baikalsk, including the former production site of Baikalsk Pulp and Paper Mill.

The document was signed on behalf of VEB.RF by its Senior Vice-President Anton Grigorov and on behalf of En+ Group by its Director for Sustainable Development Anton Butmanov.

Specifically, the memorandum outlines plans to implement a large-scale joint project to build the International Centre for Water Resources using the Baikalsk mill’s facilities. The project aims to create a multifunctional cluster of industrial, research, tourism and educational facilities.

The centre will promote socio-economic development in Baikalsk, with the project creating new job opportunities, introducing modern technology and consequently increasing budget revenues. VEB.RF and En+ Group agreed to join forces with regional and local authorities in this area.

The International Centre for Water Resources is to be built under the Baikalsk comprehensive development strategy that is currently formulated as a strategic master plan by VEB.RF’s subsidiary Baikal Region Development Center (BAIKAL.CENTER).

This will enable En+ Group to be effectively involved in preparing and carrying out the Baikalsk master plan, especially as related to the most important issues of local socio-economic development.

The memorandum also contains several important arrangements that lift the remaining restrictions and allow the infrastructure of the now-defunct mill to be used for the development of Baikalsk on a full scale. For instance, VEB.RF reaffirmed its intention to acquire the assets of Baikalsk Pulp and Paper Mill as a single lot.

Anton Grigorov, Senior Vice-President, VEB.RF:

“The memorandum is a typical example of how VEB.RF has always worked to provide a comprehensive development strategy for Baikalsk and the defunct Baikalsk mill, firmly committed to transparency, stakeholder engagement and respect for stakeholders. En+ Group is definitely the largest industry player in the region and has done a lot for Baikalsk. In this connection, combining forces with each other and working together as agreed in the memorandum, En+ Group and VEB.RF will be able to implement the most important projects to encourage socio-economic development in the Baikal region in the next several decades.”

Mikhail Khardikov, Head of Energy Business, En+ Group:

“En+ supports the government’s efforts to protect the environment and promote socio-economic development in the municipality of Baikalsk and the Baikal region. The company finds its involvement in such a large investment project to be very important to conserve and protect the natural environment. We hope its successful implementation will make the region attractive to tourists, researchers and active young people and will also encourage job creation and the development of the region as a whole.”


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