Deripaska commits to Siberia and Far East with $25 billion package

The $25 billion package includes projects of major importance for the national economy but also sees a signal from the Oleg Deripaska-controlled group that they will seek strategic partners including from Asia. 

The scale of the plan was announced at a press conference by CEO Artyom Volynets on 20 July, reported news agencies.

It echoed Deripaska's own words last year when he told Konkurent newspaper in Irkutsk:  'We are looking to carry out projects to the amount of 20-25 billion dollars in the next 15-20 years. 

'We will focus on the systemic, integrated development of the region, we'll work together with the government to solve infrastructure development issues, to preserve the competitive advantages the region has - one of them being the low cost of energy'. 

En+ is a diversified mining, metals and energy group with its core business in Eastern Siberia, close to the fast-growing Asian markets.

Projects currently underway from the Russian group include completion of the Taishet and Boguchansk aluminium smelters, and the Boguchansk Hydropower Plant.

Eastern Siberia, Irkutsk city centre. Picture: The Siberian Times

In addition, En+ is working on development of the Chineysky polymetallic ore field in the Baikal Region and the Agaskyrskoye copper-molybdenum field in the Republic of Khakasia. 

'The group's other plans envisage construction of electric power plants in eastern Russia, development of coal fields in the Republic of Tuva and Irkutsk region, and construction of the country's largest rolling mill at Krasnoyarsk Metal Plant,' reported RosBusinessConsulting.

En+ Group also has interests in iron ore, gold, and uranium mining.

Deripaska is on record expressing his optimism for the potential of Eastern Siberia and the Far East.

'I believe that in terms of the GDP of Siberian provinces, it could be tripled in the next 15 years,' he was quoted by the BBC as saying last year.

'I can't see how we can miss this opportunity. We have everything in place - people, competence, technology and a market next door.'

He told Konkurent: 'Today we are given the rare and truly historic opportunity of taking a giant leap forward in the development of Eastern Siberia and the Far East, to create a modern infrastructure with comfort in mind, to dramatically improve the quality of life. 

'In the coming decades Asia - particularly China, Japan, Korea and then India - will become the centre of the world's demand for key manufacturing resources. 

'China is already consuming approximately 40% of the world production of aluminium, nickel and copper, and half of all the coal mined - and it's demand will only grow. 

'And Eastern Siberia has enormous production and scientific potential, which, if developed in hand with the creation of the necessary logistic and energy infrastructure, and if built to meet the demands of a growing Asia - will allow us to turn the region into one of the powerhouses of the Russian economy in the coming decades.'

Irkutsk city centre, Eastern Siberia. Picture: The Siberian Times

Deripaska stressed, too, that capital would come from abroad. 

'Of course you first need to earn the confidence of foreign investors, but they are gradually coming to understand that doing business in Russia has it's advantages ~ over, say, doing business in Africa or Latin America.'