Timber Industry Complex

Policy of the Government of the Republic of Karelia in timber sector of economy was constructed according to the Program action of the Government of the Republic of Karelia on perfection of timber complex control system for the period trough to 2010.

There has been formed the Council on timber industry complex development which sessions considered issues on condition and prospects of the complex development, anmd tasks of forest exploitation. Under conditions of the basic kinds of production sales slowdown the plan of measures was prepared and recommendations on stabilization of situation in timber industry complex of the republic were developed.

Forestry Plan of the Republic of Karelia for the period from 2008 to 2018 has been developed and approved as the key strategic document in the field of forest exploitation, Forestry Rules on 11 generated central forest areas have been approved.

Control over lease terms performance by tenants of wood land, including additional conditions comprising parameters of Business-plans was carried out.

Assistance was rendered to carrying out of voluntary forest certification. As of the beginning of 2009 27% of total amount of annual forest exploitation on the rented forest was certificated. FSC certificates of forest administration and a chain of deliveries were issued to six enterprises: Swedwood Karelia, Ltd., Ladenso, Inc., Olonetsles , Inc., Segezha Pulp and Paper Mill, Inc., Lendery Timber Industry Enterprise, Inc., Zapkarelles Joint-Stock Company.

According to the government of the Russian Federation regulation On Priority Investment Projects in the Field of Forest Exploitation there has been accepted the government regulation of Karelia On Approving the Order of Selection of Applications for Realization of Priority Investment Projects in the Field of Forest Exploitation.

Work on bringing wood land lease contracts in accordance with the new Forestry Code of the Russian Federation was completed, 175 contracts were renewed on new conditions. Besides, due to planned increase of export round wood duties assistance was rendered in reorientation of production deliveries from the foreign to domestic market. In comparison with 2007 the volume of delivery to the home market in 2008 has increased by 10.5% having made 72.4% in total amount of harvest.

In 2008 under the initiative of the Government of Karelia there was organized regional statistical supervision of activity of sawmills in territory of the republic.

Realization of investment projects in branches of timber industry complex continued. To involve investments there have been used opportunities of participation of timber industry complex enterprises in exhibitions and trade fairs, in the X International Timber Forum, in the Russian Forest All-Russia exhibition (Vologda), in the Karelian Timber - 2008 specialized exhibition.

Work on perfection of personnel selection in the timber industry complex directed on improvement of professional skills of personnel, retraining of personnel due to perfection of technologies, creation of conditions to support employment was accomplished.

Offers have been submitted to the federal authorities on financial support of enterprises of timber industry complex amid the crisis, including on their inclusion in the federal list of strategic and town-forming enterprises applying for the government support; on creation of interseasonal stocks credit mechanism with indemnification of a part of interest payment expenses from the federal budget; on preservation of minimal standing wood payment rates at the level of 2008; on delay of the forthcoming introduction of 'protecting' deciduous round timber export duties in 2009, etc.

Aspects of situation in timber complex of Russia were discussed at the session of the Council on timber industry complex development under the Government of the Russian Federation and at the meeting at the first deputy prime minister of the Government of Russia Viktor Zubkov, therefore, the Government of Russia has taken certain supporting measures.

Under complex conditions faced by Pegas International, Ltd., Auer and Varlen Sawmill, Ltd., Kem Saw-Woodworking Mill, Ltd., these enterprises developed joint strategy for the crisis period, they were rendered assistance in involvement of effective proprietors.

In 2009 Government of the Republic of Karelia will keep working on measures directed on stabilization in timber industry complex.