Ilim Group management discussed progress of the Big Bratsk investment project with the Governor of the Irkutsk Oblast

On June 7, Ilim Group management had a meeting with Mr. Sergey V. Eroschenko, Governor of the Irkutsk Oblast. The meeting was also attended by Directors of International Paper, strategic partner of Ilim Group. The meeting was held during Ilim Group and International Paper Board of Directors’ visit to Siberia for a Big Bratsk progress review. It was the first meeting of the Company’s management with Mr. Sergey V. Eroschenko.

The meeting included a presentation for the Governor of Ilim Group’s Big Bratsk project, the largest investment project in Russian pulp and paper industry in 30 years with total investments exceeding USD 700 million, and a progress report. Ilim Group management also told Mr. Sergey V. Eroschenko about the Company’s social investments in the Irkutsk Oblast.

Infrastructure development in the Oblast was a key topic discussed during the meeting. It is required for further implementation of the Company’s investment plans to upgrade its business assets in Bratsk and Ust-Ilimsk.

’The projects which we are thinking of implementing in the Irkutsk Oblast are closely linked with infrastructure,’ emphasized Mr. Zakhar D. Smushkin, Chairman of the Board of Directors of Ilim Group. ’We all understand that with no airports and no roads we will be unable to deliver people and equipment. And unless we resolve the social issues, any further development will be impossible’.

Mr. Sergey V. Eroschenko noted that Ilim Group operations facilitate industry development in the Angara region’s economy. The Governor stated that the issue of major repairs of Bratsk-Ust-Ilimsk and other northern territories roads and airports will be reviewed in the near future. Infrastructure development will allow implementation of new investment projects which, in turn, will support the area, create new jobs, develop social infrastructure, and increase tax revenue.