1,400 jobs will be created in the Arctic zone of Karelia

AO “Segezha Zapad”, the key resident of the Arctic zone, plans to build the first stage of a pulp mill in Segezha by 2024 and create 600 jobs.

This plant as well as other new projects were discussed at the meeting of the Head of the Republic of Karelia Artur Parfenchikov with the head of the Ministry for the Development of the Russian Far East Alexei Chekunkov at the Arctic Forum.

The head of the region emphasized:

- The plant in Segezha is our anchor project. Now it is undergoing an examination. Simultaneously, the investor is preparing the site and is going to start construction next year. Such enterprises have not been built in the country for 40 years. The volume of investments will amount to 86 billion rubles.

The project will provide deep processing of more than 35% of timber harvested in the Republic of Karelia and the growth of non-resource exports of products with high added value.

The implementation of this project became possible thanks to the investment benefits portfolio:

- tax and administrative preferences for the Arctic zone, including the planned application of the free customs zone procedure;

- a mechanism for protecting and encouraging investment, including fixing legislative provisions and subsidizing the infrastructure.

Financial support of the VEB.RF Arctic projects is also important (9 billion rubles in 2021-2022).

The anchor investor will be able to receive up to 10% of the declared investments in infrastructure for implementation of his investment project.

The construction work is scheduled to begin in 2022.

Besides, at the meeting with the Federal Minister, Artur Parfenchikov discussed another significant trend, development of the tourism infrastructure in the Arctic. Its roads and energy systems are being brought into proper condition. However, new accommodation facilities like hotels, camp sites, guest houses are needed. It is planned to attract big investors for the construction. Assistance was promised by the federal center.

A business mission will come to Karelia in the beginning of the next year. Potential investors will estimate the prospects of the Karelian northern regions. With the use of various measures of the state support, including preferential lending, it is planned to develop this industry to the maximum.

Alexey Chekunkov highly appreciated the projects on growing mussels in the White Sea and processing wild plants.

In addition to tourism, projects are being implemented in the areas of food production, mining, information technology, logistics and manufacturing.

It bears reminding that 33 residents are implementing investment projects worth 96.4 billion rubles in the Arctic zone of Karelia today. This will create 1,400 new jobs.