RDIF, Mubadala and Sveza agree key terms for construction of pulp mill

The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund and Mubadala Investment Company, UAE’s sovereign wealth fund, announce that they reached an agreement on the key terms for the joint investment in a pulp mill construction project with Sveza, one of Russia’s market-leading woodworking companies (asset of Severgroup investment company).

The agreement was signed today on the sidelines of Russian President Vladimir Putin’s visit to UAE. The project located in the Vologda Region will have an expected total investment of about $2.8 bn. The expected capacity of the plant is over 1.3mn tons of market pulp per annum, focusing on Russian and key European and Asian markets.

The plant will be Russia’s most modern pulp mill, based upon best-in-class practices, using equipment with minimal environmental impact. The commissioning of the mill will enable Sveza to diversify their product portfolio and strengthen its position in the woodworking market.
RDIF and our leading Middle Eastern partners are pleased to support Sveza’s promising project. It will contribute to reaching the goals set out in Russia’s national project «International Cooperation and Export». This environmentally friendly, high-performance and modern enterprise will become one of the leaders in Russia’s woodworking market, as well as creating additional jobs in the Vologda Region. The region’s developed transport infrastructure will enable quick deliveries and help fully realize the product’s high export potential.
Kirill Dmitriev
CEO of the Russian Direct Investment Fund (RDIF
Construction of the best-in-class biotechnological complex is an ambitious and important project for Sveza and for Russia. This will be the most advanced pulp production facility in Russia, and will ensure our timber industry continues to be globally competitive. The distinctive advantages of the project will include its high export potential, using «green» energy and most modern technological solutions. I should also emphasize that Sveza and Severgroup always work in strict compliance with all Russian and international environmental rules and requirements. The facility’s ecological safety system will utilize cutting-edge technology and meet the highest international standards. We would also like to recognize the support of our co-investors and thank them for their confidence in this important project.
Alexey Mordashov
CEO of Severgroup