The fi rst phase of the project consisted of creating a wood-sourcing network in Russian Karelia in cooperation with JSC Karellesprom in order to serve the raw material procurement of Oy Nordic Veneers Ltd. Th e applicant would refi ne the birch raw materials in Ii and market the products to export markets. In the second phase, the prerequisites for establishing a joint venture with Lestrans-Invest and expanding veneer production were to be assessed. Th e goal was to build a network across the border region, which would be able to refi ne the Karelian wood into high-class products. Achievements: The project was completed as planned. A wood-sourcing network was built in Karelia in cooperation with the Russian counterparts and it was estimated that the network would continue to operate at maximum efficiency in the future. Wood products were already being imported from Karelia during the project. The company also researched establishing a joint venture in Karelia. As a result, wood-purchasing company OOO Belostock Ltd was established in Olonets, Russian Karelia. The company employed four Russian workers at the end of 2003. Two jobs were created at Oy Nordic Veneers Ltd during the project and four at the Russian wood sourcing company. A Russian expert was trained at the companys Ii factory and employed by the company at the beginning of the project.