Jul 23, 2004. /Lesprom Network/. A suit was filed against the CEO of Arkhangelsky Archbum (trade company) Valeri Kudriavtsev in line with the article 201 ‘exceeding powers’. The suit was filed on June, 29 after an announcement made by Hover Group representative Arthur Romanenko, Vedomosti wrote Friday. Kudriavtsev’s Archbum is accused of purchasing pulp from Arkhangelsky and then selling the products to Greek Interfiber, allegedly affiliated with Arkhangelsky, at lower prices, Vedomosti writes. On July, 20 the offices of Archbum were searched by the investigation officers. Hover Group representative Arthur Romanenko admitted in an interview to Vedomosti that the suit was filed after he filed an application. According to Anton Romanenko the North-West Federal investigation department within the Interior Ministry is dealing with the case. Vedomosti failed to reach the investigating team for comment. According to Romanenko, Arkhangelsky is no longer bringing the expected profits and therefore the shareholders don’t get the due dividends. Anton Romanenko sees the scheme used by Archbum as follows: Archbum sells pulp at lower prices to Interfiber allegedly affiliated to Arkhangelsky, the company then sells the pulp to Titan Kievsky cardboard and paper enterprise. The suit was initiated by Hover Group owning 0.04% of Arkhangelsky pulp and paper enterprise. Hover Group has been questioning the legitimacy of the consolidation of 60% of shares by Austrian Pulp Mill Holding. As the representatives of Pulp Mill Holding said before, Hover Group is close to the Basic Element investment group owned by Oleg Deripaska. Arkhangelsky is one of Russia’s largest cardboard, package and commodity pulp manufacturers. In 2003 the enterprise produced 770700 tons of pulp. The company’s profits reached RUR 72 billion in 2003, balance profits – RUR 780.7 million. Austrian Pulp Mill Holding owns 60% of Arkhangelsky pulp and paper enterprise, 20% are owned by Saint-Petersburg banking house, one of the establishing companies (together with the Basic Element) of Continental Management. Continental Management owns 13.6% of the enterprise. The enterprise sells its products through Archbum close to Titan group of companies.