The Latvian government has made a surprise decision to provide its equity investment in the Baltic Pulp Mill project in cash, rather than cutting permits from its forests (PrintWeek, 9 March).


A Sdra spokesman said the company would not comment on the move, but it was an "internal Latvian issue as to what the Latvians put into the project".


The three partners in the company the Latvian state, Sdra and Metslitto are expected to contribute about 40% of the total 591m (E960m) investment in the project.


The Latvian states contribution is thought to be in the region of 78m, with the rest of the funding for the mill coming from lenders.


The source of the states contribution is unclear, but the Latvians are committed to supply wood for the pulp mill, despite the decision.