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NEWS

€100 million EIB loan to boost pulp and paper production in Russia

21-12-2011

The European Investment Bank (EIB) is lending €100 million to finance the modernization and expansion of an integrated pulp and paper mill in Syktyvkar in Russia, in the first EIB loan provided under the Eastern Partners Facility (EPF).

 
A press release from the Bank said the loan would finance “the upgrading of pulp, paper and paperboard production, increased power generation from renewable resources, the extension of the wood yard and investments improving environmental performance and energy efficiency and enable the use of vast previously underutilised wood resources.” After completion, the project is expected to result in greenhouse gas savings of some 455,000 tonnes per year.
 
EIB Vice President Matthias Kollatz-Ahnen said: “Supporting energy efficiency projects will be one of the major goals of EIB lending in Russia in the years to come,” adding: “We will thereby contribute to the objectives of Russia and the policies of the European Union at the same time.”
 
This project fosters cooperation between the EIB and the European Bank for Reconstruction and Development (EBRD), which is also supporting the initiative, the press release said.
The loan is structured under the EPF, a €1.5 billion facility set up by the EIB at its own risk, with a ceiling of €500 million for projects in Russia. This facility complements the external lending mandate and enables the EIB to provide loans to support EU investment in the region. (ENPI Info Centre)
 
Read more
 
Press release
  
EIB – Russia and Eastern Neighbours
  
EU-Russia – Partnership for Modernisation
 
ENPI Info Centre webpage – Russia