Sberbank, Russia's leading state-owned bank, the Karelian government, and the Segezha Pulp and Paper Plant have signed an agreement on their intention to implement a project to invest EUR 410 million in modernizing and expanding the plant's production facilities. The agreement was signed today by Sergei Katanandov, the head of the Republic of Karelia, Andrei Kaznin, the president of Sberbank, and Vasily Preminin, the general director of the Segezha Pulp and Paper Plant. The signing ceremony was held in the presence of Valentina Matvienko, the Russian President's special envoy to the North-West Federal District.
'Investment is always a two-way process: investors must be ready to put money into developing production and companies must be ready to accept investment,' stressed Matvienko. 'Sberbank's participation in the implementation of this investment project is also important: there's no point hoping that foreign investors will invest in Russian manufacturing until domestic investors start actively doing so.'
In a briefing to journalists Andrei Kaznin said that the agreement will see Sberbank lend funds to the Segezha Pulp and Paper Plant over seven years. The first stage will receive EUR 90 million in funding. Vasily Preminin said that the investment project includes the construction of two new production facilities for bleached trade pulp, as well as measures to improve its quality. Production of paper for paper bags will also be increased.