On June 3, at the St. Petersburg International Economic Forum (SPIEF 2021), Mikhail Shamolin, President of Segezha Group and Anatoly Popov, Deputy Chairman of the Executive Board of Sberbank, signed a memorandum of strategic cooperation to finance a Segezha West project in the Republic of Karelia at the St. Petersburg International Economic Forum (SPIEF 2021).
The funds will support construction of an advanced biotechnological complex in Karelia that will also house Segezha PPM and Segezha Packaging. The project's total cost is estimated at approximately RUB 178 bln. The plant will create around 700 high-tech jobs for the region and will have a capacity of 1.5 ml tonnes per year.
The introduction of large-scale conversion technology at the new industrial complex will boost the development of both the regional and federal forestry industry. By adhering to the highest ecological standards, the project can resolve long-standing environmental issues in the city of Segezha. The project’s social benefits include providing the city with a reliable heat and energy supply.
Segezha West will enable large-scale domestic processing of pulpwood from Karelia and reduce exports of raw forest materials. The plant will also enable production of high value-added products and facilitate import substitution.
In December 2020, Segezha Group signed a trilateral agreement with Russia’s Ministry of Economic Development and the Republic of Karelia region to protect and promote investments. The Company also received residential status in Russia's Arctic zone.
Anatoly Popov, Deputy Chairman of the Executive Board of Sberbank: "Sber and Sistema have a long history of doing business together, and today, I am very pleased to be signing this agreement with Segezha Group, one of Sistema’s portfolio companies. Sber will advise our partner on matters relating to international economic activity and transactions, in an attempt to help optimize the Company’s foreign contracts and minimize their costs and risks. In addition, we will make Sber’s high-level products and instruments, such as electronic remote banking, available to our partner, helping them to more effectively manage their transactions.”
Mikhail Shamolin, President of Segezha Group: "Alongside Sberbank, we are building a state-of-the-art pulp and paper mill, while adhering to all necessary environmental standards, a key task outlined by our country’s leadership. Our Company actively supports the Republic of Karelia's transition towards a new, intensive forest management model which not only contributes to the preservation of the country's forest resources, but helps develop new opportunities for the forestry business, which we intend to utilise via the Segezha West project.”