AFK Sistema may invest €1 billion to revive Polar Bear project at Segezha PPM

Vladimir Yevtushenkov’s AFK Sistema is ready to invest €1 billion into the Polar Bear project which involves the production of bleached softwood and bleached hardwood pulp, as well as non-bleached pine pulp at Segezha PPM (Karelia).

Investlesprom holding which owns the plant started to implement this project in 2009, but then it was halted due to lack of funding.

Last year, Sistema signed a contract with the Bank of Moscow on acquisition of Investlesprom. The sum of the deal was estimated to be over $500 million.

At the PAP-FOR conference in September 2013, Commercial Director of Investlesprom Maxim Pisarev suggested that after completion of the deal Polar Bear project will revive. It is expected that Segezha PPM will go into the possession of AFK Sistema already in March.