Today on January 29, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, the Government of the Komi Republic and Russia’s Union of Timber Industrialists and Timber Exporters entered into a Memorandum on Cooperation in Carrying out the Udorsk Pulp-and-Paper Mill Construction Project in the Komi Republic.

The Agreement was signed by Vnesheconombank Chairman Vladimir Dmitriev, Rusian Union of Timber Industrialists and Timber Exporters President Miron Tatsyn and Komi Republic Head Vladimir Torlopov.

The three sides are determined to cooperate to carry out the Udorsk Pulp-and-Paper Mill Construction Project in the Komi Republic. The Project’s expected investment value is 40 231 million rubles. The Mill’s construction period is 4 years from the start of project design work. It is expected to reach its full design capacity in 2014. The Project provides for building a production facility to manufacture competitive deeply processed wood products such as coated and metallized paper, label paper and paperboard. The Mill is to be designed in accordance with the most modern environmental safety requirements.

Under the Agreement Vnesheconmbank is to consider the possibility of conducting comprehensive expert examination of the project and participating in working out a scheme for financing it.

Vnesheconombank’s participation in implementing this Project is in line with the principles, main lines, and industrial priorities of Vnesheconombank’s investment activity stipulated in the Memorandum on Vnesheconombank’s Financial Policy.

The implementation of the Project will drastically reduce the export of unprocessed wood from the region and will help:

• address the region’s social problems by way of building social infrastructure facilities and creating additional jobs;
• raise people’s incomes and living standards in the region;
• reduce the import of pulp-and-paper products;
• expand businesses involved in building the pulp-and-paper mill from other industries.

Thus the construction of the Udorsk Pulp-and-Paper Mill will not only contribute to the development of the Komi Republic’s economy but also will result in implementing the measures adopted by the Russian Government in the field of timber processing aimed at increasing the share of high value-added products (deeply processed wood) and boosting the timber processing industry’s investment appeal.

Origin: Press Office of Vnesheconombank
Contact person: Svetlana Nikitina
Phone: +7 (495) 608-46-93, Fax: +7 (495) 975-21-34
E-mail: press@veb.ru