MIGA guaranteed the International Paper Company of the United States for its equity investment in a pulp and paper mill near St. Petersburg. The $30 million guarantee covers the investment against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project, located about 250 kilometers north-west of St. Petersburg, involves the expansion and upgrading of the Svetogorsk mill. The investment will strengthen the local economy since the mill is the principal employer in the area, employing more than 2,700 Russians. The project will help to revitalize the Russian pulp and paper industry and increase the quality and availability of paper products in the domestic market.