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MIL OSI Translation. Region: Russian Federation –

The corresponding instruction was given by Deputy Prime Minister – Presidential Plenipotentiary Representative in the Far Eastern Federal District Yuri Trutnev to interested federal ministries and departments following the meeting on the development of the timber industry complex of the Far Eastern Federal District.

“Almost half of the forest fund lands of the Russian Federation and a third of Russian timber reserves are concentrated in the Far East, while the volume of timber harvesting is less than 8% of the total Russian one. No more than 20% of the allowable annual volume of wood removal in the Far East is harvested annually. In 2021, the volume was less than 15%, or 17.5 million cubic meters. m. The Russian government decided to ban the export of raw materials. In order to support the construction of processing facilities, a number of state support measures are being implemented: tax breaks and preferences within the priority development areas, concessional financing from the Industry Development Fund, subsidizing the costs of transporting timber products for export,” Yuriy said opening the meeting. Trutnev.

In the Far East, 12 priority investment projects in the field of forest development have been implemented (five projects in the Khabarovsk Territory, three projects each in the Primorsky Territory and the Republic of Buryatia, one project in the Amur Region), enterprises for the production of sawn timber, boards, veneer, parquet, cardboard, cellulose products, biofuels. Two more projects are under implementation in the Primorsky Territory and the Jewish Autonomous Region. The actual volume of attracted investments in these projects is about 41 billion rubles.

From January 1, 2022, a ban on the export of untreated timber came into force. According to Alexei Chekunkov, Minister for the Development of the Far East and the Arctic, the business had a year to reorient its activities from exporting round timber to timber processing. “The figures show that the majority of enterprises have managed to restructure their business structure,” he said.

In 2021, compared to 2020, the volume of wood processing increased by 25%. In January 2022, timber exports from the Far East decreased from 314.5 thousand tons to 288.1 thousand tons, although the value of exports increased by $14.5 million (over 130% compared to the same period last year).

It was reported on the submission to the State Duma of the draft federal law “On Amendments to Certain Legislative Acts of the Russian Federation in Regulating Relations on the Creation, Repair and Operation of Forest Roads”. The bill should define the concept of a forest road, the legal status of such roads and provide an opportunity to conclude lease agreements for the construction of forest roads. According to the leadership of the Ministry of Industry and Trade, the adoption of the law will positively affect, among other things, the fire safety of Russian forests and their accessibility.

Also, information was announced about the Ministry of Industry and Trade conducting an experiment to create digital maps of forest regions, within the framework of which the existing routes for transporting timber cargo will be digitized in order to develop optimal routes.

The Ministry for the Development of the Far East, the Ministry of Industry and Trade, the Ministry of Economic Development, the Ministry of Transport, and the Federal Customs Service were instructed to work out the issue of developing a set of systemic measures to support investors implementing investment projects in the forest industry in the Far East for the construction and modernization of roads. “We need to make sure that new projects are launched, new processing capacities are built. The construction of forest roads is one of the significant costly parts of such investment projects. Some part of the load can be taken by the state through tax cuts or other tools,” Yury Trutnev believes.

The Deputy Prime Minister instructed the Ministry of Industry and Trade, the Ministry for the Development of the Far East, the Ministry of Economic Development, the Ministry of Transport, together with the Analytical Center under the Government, to conduct a comprehensive analysis of the state of the timber industry complex in the Far Eastern Federal District.

The Ministry for the Development of the Far East, the Ministry of Natural Resources, together with the Corporation for the Development of the Far East and the Arctic, were instructed to develop a mechanism for the formation of forest plots for the implementation of investment projects in the Far Eastern Federal District.

The issue of employment in the timber industry complex was considered. According to the Ministry for the Development of the Far East, the average number of employees in organizations operating in the timber industry complex in the Far Eastern Federal District is more than 27.4 thousand people (a decrease of 4.3% compared to January 2021). The risks of a further reduction in the number of employees of the timber industry complex in the Khabarovsk Territory are noted.

Yuri Trutnev instructed the Ministry of Labor, the Ministry of Industry and Trade, the Ministry of Economic Development, the Ministry for the Development of the Far East to conduct a comprehensive analysis of employment in the timber industry complex and work out measures for the employment of people who have lost their jobs at the enterprises of the timber industry complex of the Far Eastern Federal District.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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