The VEB.RF Group and Segezha West (part of the Segezha Group, AFC Sistema) have agreed to work together to build a new pulp-and-paper mill in the Republic of Karelia. The agreement in this area was signed by VEB.RF Deputy Chairman and Member of the Management Board Artyom Dovlatov, VEB.RF Senior Vice-President Anton Perin, and Segezha West Chairman of the Board Mikhail Shamolin today at the St. Petersburg International Economic Forum.
The funds provided by the VEB.RF Group will be channelled into the construction of a pulp-and-paper mill.
The mill will ensure added-value Karelian pulp wood-processing and non-commodity exports’ growth.
In December 2020, Segazha West entered into a trilateral investment protection and promotion agreement with the Russian Ministry of Economic Development and the Republic of Karelia and received the Russian Arctic Zone resident status.
“As a key financial development institution, VEB.RF offers active support to investment projects in the Arctic. Our goal is to promote the potential of this territory and to be a social and economic development driver in the Arctic,” Artyom Dovlatov said.
“Our goal in Karelia is to create a state-of-the-art biotechnology facility to maximise added-value wood-processing. The project will also dispel environmental concerns of Segezha’s citizens, and provide them with power and heat supply. It is an ambitious complex task which will require the consolidation of resources, including those of the banking sector,” Mikhail Shamolin noted.
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