Russian Pulp Hurts Stora, Rewards International Paper

In the new world order for pulp, Finland's Stora Enso Oyj is on the wrong side of Russia. That's making winners out of Memphis, Tennessee-based International Paper Co. and Mondi Ltd. of Johannesburg.

Helsinki-based Stora, Europe's biggest papermaker, currently imports Russian logs to turn into pulp. Higher export duties will double the cost of timber from its eastern neighbor beginning next year. While Stora's first mill won't open in Russia before 2011, International Paper and Mondi already operate in the country, the world's second-fastest growing paper market after India.