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You are here » Home Page
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» Russia's forestry industry primed for Investment
Russia's forestry industry primed for Investment
2013-08-22
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Russia is going to invest 380 billion rubles ( $13 billion US$ ) to support preference projects in the country’s forestry industry to help make the industry more appealing for investors to invest in this sector so therefore helping heal longstanding challenges that have been normal across this industry in Russia, President Vladimir Putin stated in a recent address.
“We will make the forestry industry more attractive for investment. We intend to input over 380 billion rubles in 118 projects in the industry which will obtained priority status ,” Putin explained to a State Council gathering which talked over methods to maximize the efficiency of the forest industry.
Russia’s forestry trade has appeared to be in the doldrums for the past twenty years, marred by sub standard governance, inferior investment prospects and the growth of unlawful felling and therefore illegal timber sales.
About 19 % of timber logging or about 34 million cubic meters of timber in Russia is illegally produced, with the economic harm from unauthorized timber sales forecasted at 13-30 billion rubles ( $420-$970 million ) yearly, as outlined by WWF Russia and World Bank reports.
The current system for forestry project selection which genuinely favors larger production facilities for timber processing, also needs to be taken into consideration so that Small to medium businesses have a level playing field to help them develop their business in the forestry industry and Woodworking industry, Putin noted , adding Russia at the same time required widely accepted ways of helping out all businesses and organizations which will deliver commercial and social advantages to the whole of Russia.
Putin additionally stated Russia was required to strengthen punishment for unauthorized loggers .
“First of all , we have to improve a program of precise monitoring and carve out very tough measures for individuals who barbarically demolish the forest ,” Putin explained .
Over 7000 individuals were fined in 2012 for illegal felling, with total destruction amounting to around 10-11 billion rubles, the president added, with just 2 % of these funds being reclaimed .
“The forest industry must be rescued from illegal felling, which has grown by 66 % during the past 5 years making the quantity of felling huge,” Putin stated.
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