Russian Prime Minister Vladimir Putin allowed the plant to resume making pulp, paper and cardboard in the area surrounding the lake.

However, according to intermediate results, Russian timber industry remains unprofitable.

In order to escape pulp and paper market collapse in Russia it is urgently required reconsidering the development strategy of the Russian timber industry.

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In January-April 2009 market pulp production decreased by 25.9%.

Due to fall in demand on pulp, lack of quality raw materials and nonconformance to ecological standards the mill has not been operated since November 10, 2008.

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Russia still have a number of strategic advantages to fight for leading positions in some segments of the world market.

Pulp and paper industry of the North-West Russia has been at tha stage of stagnation for three years already.

He claimed that the mill should be closed regardless of its water rotation type and suggested location of other enterprises on the territory of the mill.

"Construction of  new pulp and paper mills remains a pressing issue for our country," Medvedev said.

Pulp and paper mills in the Ural federal district (Sverdlovsk and Tumen regions) use technologies developed in 1940s.

Market pulp production decreased by 32.5% in January 2009.

Total investment volume in Russian timber industry is to make up over 2 200 bln rubles by 2020.

April 25, 2008 UPM and Sveza Group of Companies signed a 50:50 joint-venture agreement.

In pulp-and-paper industry profit reached 13.5 bln rubles (107.1%) with cost-effectiveness making up 13.9%.