Russia’s largest bank to provide financial support to Kondopoga PPM

German Gref, head of Sberbank. Photo: TASS

The Kondopoga PPM, one of Russia’s leading pulp and paper producers, which is part of Karelia Pulp Holding, plans to significantly expand and diversify its range in years to come, that will be achieved on the basis of a recent agreement, was signed by the company with Sberbank during the recent St. Petersburg International Economic Forum.

It is planned, the agreement with Sberbank will allow Kondopoga PPM to start a more intensive diversification of its production, which, so far, has been primarily focusing on the production of newsprint.

The volume of investments as a result of the agreement, signed between the partners is not disclosed. For the first time, the project for reconstruction of the PPM "Karelia Pulp" was presented in March 2021: it involves the production of bleached viscose pulp for the textile industry, as well as the production of cardboard for flat layers and paper for corrugation.

Viktor Ventimilla Alonso, Chairman of the North-West Bank of Sberbank, comments:


"Successful implementation of the agreement will allow Kondopoga PPM to expand its product line and create flexible production that quickly responds to the environment of both Russian and foreign markets."


The PPM modernization project implies maintaining the same number of jobs while increasing the efficiency of production processes. In addition, the environmental impact on the nature of Karelia will be reduced.


By: Eugen Gerden