Thursday, July 18, 2013

International Paper's Big Pulp Bet in Russia

http://online.wsj.com/article/SB10001424127887324183204578567410469034722.html
When the chief executive of International Paper Co. IP +0.38% arrived in a private jet for his first visit to this Siberian city five years ago, he had to wait three hours on a metal bench in the garagelike airport until someone showed up to look at his passport.
Russia has a reputation as a tough place for foreign companies to do business. But that's not stopping Memphis-based International Paper from making a big bet on Siberia. Paul Sonne and James R. Hagerty report. 
John Faraci has faced many more hassles as an investor in this remote and frigid city: Squabbles with Russian partners in a joint venture, a bloated payroll, repeated complaints over the smell of a wood-pulp production plant and enough crime so that 5% of a Russian venture's workforce is devoted to security.