OREANDA-NEWS. On 08 April 2009 was announced, that a working meeting was held in St. Petersburg between Paul Herbert, Chief Executive Officer of Ilim Group, and Ilya Mikhaelchuk, Head of the Arkhangelsk Oblast Administration. The meeting was also attended by Alexander Pozdnyakov, Managing Director Business Unit Ilim West, Dmitry Chuiko, GR Director of Ilim Group, and Valeriy Sukhoborov, Head of the Arkhangelsk Oblast Administration Representative Office in St. Petersburg.

The discussions were about issues where business and government work together to sustain social stability in the Arkhangelsk Oblast during the economic recession. Forest Lease payment variants were discussed as ways to control wood cost during the crisis, and keep Arkhangelsk pulp and paper producers competitive. The group also reviewed the status of labor market related to job reductions. Another topic discussed was the serious financial losses the Ilim Group is incurring due to the Koryazhma City Municipal Entity's increasing indebtedness for thermal energy and eclectic power that the mill supplies to the town.

Ilya Mikhalchuk expressed willingness to review privileges related to the priority investment project of Ilim Group, such as the application of a minimum lease rate to all timber land allocated to the company. Such a practice could be considered, stressed Mikhalchuck, provided that the resulting savings are used for purposes such as, development of forest roads. The Head of the Administration spoke favorably of the Group's efforts to retrain employees it released after the closure of the viscose pulp production line in Koryazhma, and to assist them in finding new jobs. However, the Governor suggested that more options need to be developed to help find new employment for women terminated as part of the Koryazhma Branch headcount reductions. At the same time Mikhalchuk stressed the importance to train young skilled workers for the Oblast enterprises, including pulp and paper mills. He already approached the Arkhangelsk Oblast vocational schools to begin development of training programs in the area of harvesting and chemical wood processing.

The Head of the Arkhangelsk Oblast Administration encouraged Ilim Group's management to continue supporting socially oriented organizations in Koryazhma despite of the crisis, to which Paul Herbert agreed.

A next step work plan was agreed for each topic.