The Governor of the Irkutsk region: the Baikal pulp and paper mill will not restart

IRKUTSK, October 30. The Baikal pulp and paper mill (BPPM), the main production which was stopped two years ago, will not resume its work, despite the lack of resolution of the government on its closing. This was stated to journalists by the Governor of the Irkutsk region Sergey Levchenko.

“A principled decision regarding fixed assets of the plant has not yet been made. Maybe that’s why roam numerous rumors that the resumption of the plant is still possible. But I want to assure you that this is not so: his work is not resumed, and we will move to this area was more acceptable to Baikal,” he said.

De jure is not closed

The head of the region confirmed that at the moment concerning the fate of Baikalsk pulp and paper mill operates a government decision in 2013 to suspend the production of the document on its final closure never came. “Why not, I have no such understanding,” – said Levchenko.

A source in “VEB Engineering” (a subsidiary of Vnesheconombank oversees the process of being phased out of production) said that the restart of the plant is unlikely, though technically possible – then the smelter would require a VEB loan of about 10 billion rubles.

He recalled that 95% of the products produced by the mill in recent years, been exported to China, 5% viscose pulp is directed at the needs of the domestic defence industry. “Perhaps in the framework of the reorientation of the economy on defense, resume their own production of viscose pulp, which in Russia is no more, it would make sense, but hardly on Baikal”, – said the representative of the company.

The possible restart of BPPM periodically raised by residents of single-industry town of Baikalsk, which despite the prospect of obtaining the status of territories of priority development, still have not received a replacement production. The problem of unemployment in the South of Baikal is still extremely sharp.

The position is unlikely to change

“Since 2007, UNESCO has annually sent letters to the foreign Ministry on the need to ensure the protection from pollution of the world heritage site. The position of the international community on this issue certainly does not change”, – said the representative of “VEB Engineering”.

The mill was commissioned in 1966. The decision to phase the closure of the pulp mill on lake Baikal was officially announced in February 2013. Since September 2013 discontinued pulp cooking, after which it was announced the staff reduction.

To purchase the site the mill to create in the Irkutsk region the management company for its planned development of one of the subsidiaries of the Bank. Preliminary draft development of BPPM industrial site with an area of 457 hectares involves a combination of tourist and recreational areas and environmentally friendly production. In your version of the zoning scheme the first line of the Baikal coast allotted to projects such as the Oceanarium, a water Park, eco-village and private gerontology center.

Project proponents are encouraged to obtain the status of residents of Baikalsk, located in the tourist special economic zone “Gate of Baikal”. However, in the medium term, the most realistic is the project of reclamation of waste-opening, which can be started in the spring of 2016.

49% of actions of combine belong to the state represented by the Federal property Agency, 51% – to structures of businessman Nikolai Makarov. In December 2012 the mill entered bankruptcy proceedings, the last time it was extended until April 2016.