Oct 25, 2006. /Lesprom Network/. International Paper (USA) will receive 25% in Russian largest pulp-and-paper holding Ilim Pulp (St.-Petersburg, Russia), partners to be will announce today, source in bank groups, familiar with details of the deal, told Vedomosti. Ilim Pulp owners will earn up to $500 million, experts counted. Press conference with participation of Ilim Pulp chairman of the board Zakhar Smushkin and representatives of International Paper will be hold today. Ilim Pulp PR director Elena Konnova said, that plans on company’s strategic development will be announced during the press conference. She declined to further comment. But the source familiar with details of coming transaction told Vedomosti that the parts will announce the sale of blocking stake of Ilim Pulp to American company. Another source acquainted with details of the deal specifies that International Paper will acquire minority interest in Swiss Him Holding S. А. It owns main assets of Ilim Pulp: about 90% in Kotlass PPM, Pulp and cardboard mill, Ust Ilim LPC, Bratskcomplexholding, Ilim-Gofropuk and 51% in St.-Petersburg cardboard-polygraphic mill. Vedomosti interlocutor says, that it concerns creation of a new joint venture on the base of assets of Ilim Pulp. This JV plans to acquire other assets in Russia, without specification. No comments were obtained in International Paper yesterday. Representative of Federal antimonopoly service told Vedomosti, that the service hasn’t received any request for acquisition of a share in Ilim Pulp. Competitors were impressed by the transaction between Ilim Pulp and International Paper. NLC CEO Andrey Prokopov calls it epochal for the industry. “A quarter of the world forest resources is amassed in Russia, that’s why American company wants to enter Russian market”, State Duma deputy and former owner of Arkhanguelsk PPM Vladimir Krupchak said. Russian pulp and paper assets are underestimated, partly because of country risk, and it’s more profitable to buy them than to build new enterprises, one of the businessmen, engaged in forest industry, added. The transaction will bring Ilim Pulp shareholders considerable dividends. Prokopov valued 25% of Ilim Holding at $250-500 million, Lesprom Industry Consulting CEO German Lipkin - at $300-400 million. However, this transaction is only beginning, some top-managers of forest industry companies are confident. They assume that International Paper will try to buy majority interest in Ilim Pulp.