Russian bank VTB has acquired a 10% stake in Finland-based forest product company Ruukki to help it expand operations in Russia.
VTB, which acquired the stake for €76.9m from Procomex SA, said the basis of the deal was the common interest of VTB and Ruukki to develop the Russia forest industry. Procomex retains a 7.48% ownership of Ruukki.
Ruukki has plans to develop a sawmill and pulp mill in the Kostrama region. The sawmill will be a €50m investment and the pulp mill will cost an estimated €1bn.
The softwood sawmill would have a yearly production of 300,000m³.
