We propose a new approximate factorization for solving linear systems with\nsymmetric positive definite sparse matrices. In a nutshell the algorithm is to\napply hierarchically block Gaussian elimination and additionally compress the\nfill-in. The systems that have efficient compression of the fill-in mostly\narise from discretization of partial differential equations. We show that the\nresulting factorization can be used as an efficient preconditioner and compare\nthe proposed approach with state-of-art direct and iterative solvers.\n