Russian authorities hope that the new Forest Code will open the door for investments in timber industry. An unauthorized rally against the new Forest Code that allows chopping down timber of the first category took place in Moscow.
Photo: Pavel Smertin
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Forest Code Adopted
Russia’s new Forest Code is coming into effect next year. The Federation Council has endorsed the bill and date for its enforcement following the president’s request. The new blueprint aims to make forest management more effective and encourage investments in the industry. Timber merchants say that a major block for investments – outdates laws – has been eliminated.
The Federation Council passed the new Forest Code on Friday to make it a law in January 2007. The bill has been debated in the parliament for 18 months. Back in November, Federation Council members showed their unwillingness to pass the bill. However, the meeting between Federation Council Speaker Sergey Mironov and President Vladimir Putin has dispelled all doubts.
Russian timber industry needs $4 billion of investments annually, Russian officials estimate. Russia’s forests cover 1 billion 180 million hectares, which is 70 percent of Russia’s land. “Only 20 or 30 percent of wood-cutting areas are being developed,” Alexander Belyakov, head of the Timber Industry Committee at the Trade and Industry Chamber, says. “We are in short of vital infrastructure and roads.” Russian authorities hope the new code will encourage investors to develop infrastructure as well.
Under the new law, wood-cutting areas are to be divided into three categories – protected, exploitation and reserve ones. Forests on agricultural, defense and industrial lands have the protected status. However, the use of protected land plots will be streamlined. This kind of plot will be available for lease for the time of up to 49 years following a special auction. Forest lands will be held as federal property while regions will be in charge of their management.
www.kommersant.com
All the Article in Russian as of Nov. 25, 2006
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