Ilim Group Signs Forest Management Pact with Arkhangelsk Oblast Government

Ilim Group will allocate RUB 54,700,000 for implementation of measures related to forest management, forest protection, safety and reforestation in the Arkhangelsk Oblast region of Russia.

Oct. 10, 2012 (Press Release) - Ilim Group management and the Arkhangelsk Oblast Government (Russia) have signed a cooperation agreement in the field of forest management relations. In accordance with the agreement, Ilim Group will allocate RUB 54,700,000 (approx. USD 1.75 million) for implementation of measures related to forest management, forest protection, safety and reforestation in the region.

The agreement was signed within the context of actual social and economic cooperation between the Government of the Arkhangelsk Oblast and OJSC Ilim Group aimed at comprehensive development of the region. Paul Herbert, CEO of Ilim Group, and Igor A. Orlov, Governor of the Arkhangelsk Oblast, have put their signatures to the Agreement.

Pursuant to this Agreement, Ilim Group will carry out construction work at two sites of forest seed selection and production farms to be established in the south of the Arkhangelsk Oblast. The company will also provide financing for forest management and training of specialists for aerial surveillance of forests to detect forest fires.

Ilim Group is the largest lessee of the forest land in the Arkhangelsk Oblast. Currently, the company implements its priority investment project in forest development with total investment volume of RUB 14.9 billion in this region. The project includes construction of a new paper machine for production of high-grade cut-size and offset papers in Koryazhma, the Arkhangelsk Oblast, which is now underway.

SOURCE: Ilim Group