Grim up north (2)

Local conspiracy?

However, the local procuratorate in Russia closed down Muxing Timberland on March 9, 2007, saying that a driver in charge of transporting timber was suspected of stealing timber from other woods.

Fu said the transportation company the driver worked for was hired by Muxing Timber to transport wood, and that the driver was not an employee of Muxing Timber.

But later, the local procuratorate issued further charges, including failure to pay fees for use of resources, and required the timber office of Khabarovsk Natural Resources Department to terminate its contract with Muxing Timber.

"The whole process was a scheme by the local authorities," Fu said.

First, the authorities didn't make it possible to pay the fees for use of resources, according to Fu.

"And second, the procuratorate illegally closed Muxing Timber, which meant that our company was unable to comply with the terms of the contract," Fu said.

Eventually, the forest was auctioned by the procuratorate and its business operation rights were taken back by the Khabarovsk Natural Resources Department in 2007.

"The major motivation for the local interest group was the rising price of wood since 2006," Fu explained.

Due to comprehensive investment by Muxing Timber from 2004 to 2006 and rising international wood prices, the market value of the forest had nearly doubled since 2003.

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