Last Gasp for Factory Bequeathed by Soviets

BAIKALSK, Russia — When the aging paper mill in this Siberian town is transforming logs into rolls of cardboard that resemble giant thread spools, Eduard Merkulov not only has a paycheck but also faith in the future. Maybe there is a place in the new Russia for a middle-aged laborer like him, calloused hands and all.

His wife, brother-in-law and many of his neighbors also work there, and feel the same way. “There is nothing else here,” Mr. Merkulov said. “Without the factory, I don’t know what we would do.”

But the factory is wheezing, and may not survive to employ another generation. And if it goes, will the town, too?...