BM Group’s other blunders
While Asia Les was the largest investment project BM Group
used to gain access to Russian forests, it wasn’t the only one – there were
four others. And while there is no evidence of the same kinds of bribery and
abuses underpinning them, they also ran afoul of the authorities for failing to
deliver on their promises.
- DalEuroLes (annual allowable cut: 480,000 cubic metres): named a priority project in April 2008, DalEuroLes in August 2012 became the first project blacklisted by order of Khabarovsk Krai’s regional government, having lost its majority investor, failed to develop one of two sites as required and suffered delays of more than a year.40
- Amur Forest (AAC: 114,000 cubic metres): added to the priority list in April 2008, the project ran up debts and was eventually served with court writs in June 2012 to recover money owed.41 Amur Forest managed to eliminate the debt and avert bankruptcy proceedings42, with the project completed in 2015. Liquidated in May 201743, the company’s forest leases passed to BM affiliate Hokinus LLC (owner: Logistic Les).44
- BM Sakhalin (AAC: 408,000 cubic metres): named a priority project in the Sakhalin Oblast province, June 2012; delisted December 2017.45 From the beginning, experts expressed doubts about the scheme because of its remote location, lack of raw materials and risk of environmental damage. The project limped behind schedule soon after plans were approved, losing the support of its investors.46
- Logistic Les (AAC: 776,600 cubic metres): named a priority project in February 2017; delisted July 2019 for unspecified breaches.47 Logistic Les later became subject to an arbitration suit for non-payment of debts.
