Kraslesinvest faces 90 million ruble lawsuit over firebreak violations amid fraud probe

A legal storm engulfs Krasnoyarsk's timber giant—environmental fines, a fraud scandal, and a leadership shakeup. What's next for the embattled firm?

, and Administrator

2026 May 13 . 12:09 PM

1 min read

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Kraslesinvest faces 90 million ruble lawsuit over firebreak violations amid fraud probe

Kraslesinvest, a leading forestry and timber company in Krasnoyarsk Krai, is facing legal action over alleged environmental violations. Authorities are demanding nearly 90 million rubles in compensation for unbuilt firebreaks, while the firm’s former CEO remains under investigation for fraud. The dispute began on 25 October when the Krasnoyarsk Krai Ministry of Natural Resources and Forestry filed a claim against Kraslesinvest. The company stands accused of failing to construct 1.7 kilometres of mineralised firebreaks, a requirement under forestry law. Rosprirodnadzor later escalated the case, submitting its own 89.9-million-ruble lawsuit to the regional arbitration court on 13 November.

The legal troubles come as the company undergoes leadership changes. A new CEO has taken over, following an investigation into the previous head for allegedly defrauding the budget of over 250 million rubles. Despite the controversy, Kraslesinvest had earlier announced plans to develop a pulp and paper mill in the Angara region. The arbitration court is now reviewing the environmental claim, with a decision pending.

If the lawsuit succeeds, Kraslesinvest will be required to pay 89.9 million rubles for the firebreak violations. The outcome may also affect the company’s broader operations, including its proposed mill project. Meanwhile, the fraud investigation into its former CEO remains ongoing.