VTB Bank has agreed a credit line for more than RUB 1 billion for Belozerskles, part of Cherepovetsles Holding, to finance a value-added timber processing project. The project is called “Organising the Production of Value-Added Processed Timber Products in the Belozersk District of the Vologda Region.”
The approved credit facility comprises two non-revolving lines of credit, one for RUB 600 million for a seven-year term and the other worth EUR 2.5 million for a five-year term. The money will be used to fund construction and assembly works and to purchase equipment for the project.
“VTB Bank is actively supporting the development of small and medium-sized businesses. This is one of the top priority areas for the [VTB] Group. We are glad to be co-financing one of the priority investment projects in the domestic timber sector. By supporting Belozerskles’ initiatives, we are contributing to the development of effective forestry management in the Vologda Region,” said Denis Bortnikov, member of the VTB Bank Management Board.
The Ministry of Industry and Trade had earlier included this project on the high-priority list for investments in the Russian timber industry.
The project will include facilities for processing low-grade broadleaf wood and the creation of bio-energy infrastructure.
Belozerskles was founded in 1994 and is part of Cherepovetsles Holding, one of the largest logging timber holdings in northwestern Russia. Belozerskles harvests wood in five districts of the Vologda Region and turns out around 200,000 cubic metres of timber per year.