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Segezha Group joins forces with VEB.RF to create a state-of-the-art pulp and paper industrial cluster in Karelia

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On June 4 2021, at the St. Petersburg International Economic Forum, the Chairman of the Board of directors of Segezha West (part of Segezha Group, a Sistema Company), Artem Dovlatov, the Deputy Chairman of VEB.RF, and Anton Perin, Senior Vice President of VEB.RF, signed an agreement for the joint construction of a new pulp and paper plant in the Republic of Karelia.

Financing for the construction of the plant will be provided by the VEB.RF Group, i.e. The Russian national economic institute. The «Segezha West» project will be implemented at the total cost of RUB 178 billion.

The project will carry out deep processing of pulpwood from Karelia and will enable growth in non-primary exports for high value-added products. In December 2020, the Segezha Group signed a trilateral agreement with the Russian Ministry of Economic Development and the Republic of Karelia to protect and promote investments. The Company also received residential status in Russia’s Arctic zone. «VEB.RF, as a crucial financial development institution, actively supports investment projects in the Arctic zone.  We aim to become a powerful driver of the Arctic’s socio-economic development, to unlock the potential of this region» says Dovlatov.

«Our goal in Karelia is to build a modern bio-technical complex that allows for the highest possible conversion of raw wood materials. We also intend to address ecological issues in the city of Segezha and provide local residents with energy and heat supplies. This is an ambitious task that requires the pooling of efforts, including from the banking sector,» explains Shamolin, Chairman of the Board of directors of Segezha West.

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