On June 3, at the St. Petersburg International Economic Forum (SPIEF 2021), Mikhail Shamolin, President of Segezha Group and Yuri Soloviev, First Deputy President and Chairman of VTB Bank, signed a memorandum of strategic cooperation to finance a Segezha West project in the Republic of Karelia.
The funds will support the construction of an advanced biotechnological complex in Karelia that will also house Segezha PPM and Segezha Packaging.
The total cost of the project is estimated at RUB 178 billion, and the complex’s annual capacity will be 1.5 million tonnes. The project will create about 700 high-tech jobs in the region and will help to resolve environmental issues in the city of Segezha, as well as establish a heat and energy supply to local residents.
The deep processing of pulpwood at Segezha West will reduce exports of raw forest materials and increase the region's production of high value-added goods.
In December 2020, Segezha Group signed a trilateral agreement with Russia’s 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.
Yuri Soloviev, First Deputy President and Chairman of VTB Bank: "VTB is dedicated to comprehensive cooperation with Segezha Group. In April, VTB capital acted as one of the bookrunners on the Company's Moscow Exchange IPO. The creation of a new pulp and paper mill is a continuation of investment development, boosting the potential of the domestic deep processing industry and strengthening Russia's position in the global pulp market. Given the growing global climate agenda, one of Segezha Group's key priorities is the implementation of measures to improve environmental performance. The Company has adopted an ESG policy and is included in ESG ratings. VTB has long been conscious of its own obligations to sustainability, both internally and working with clients and partners. We are happy to provide financial support to projects that prioritise ESG factors.”
Mikhail Shamolin, President of Segezha Group: “We decided to implement an ambitious project in Karelia, and our holding company will require external help to achieve this. Therefore, we are interested in attracting capital from international banks and long-term investors both in Russia and abroad. The project’s success will depend on an unprecedented team effort to address several unique engineering and technological challenges that may well be the first of their kind in post-Soviet Russia. The result will be the implementation of modern production and engineering techniques in combination with high environmental standards.”