Minister Says $100Bln in Timber Exports Possible
By Torrey Clark -- The Moscow Times
Russia should be exporting $100 billion a year in timber, paper and other wood products, more than 10 times the current amount, and the state needs to step in to lead the way, Agriculture Minister Alexei Gordeyev said Monday.
"The state should define the path for development of the forestry sector," Interfax quoted Gordeyev as saying at the "Forest and Man" forum, devoted to the development of the industry.
President Vladimir Putin also weighed in, saying in a greeting sent to the forum: "I am convinced that the recommendations developed during the forum will help resolve many problems in the sector and smooth the way for Russia's efficient trade and technical cooperation with the largest timber-processing countries," he said.
The government has batted around ideas for turning the highly fragmented industry into a money maker for the country. Industry, Science and Technology Minister Ilya Klebanov said Russia must increase the share of manufactured products in exports, news agencies reported.
Russia, where almost a quarter of the world's cuttable forests grow, produced almost $8 billion worth of timber products in 2001, and exported about half. Nearly all the exports were raw logs and other minimally processed materials.
Klebanov also called for improvements in the legal climate in the sector to encourage more efficient use of one of the country's major natural resources.
Timber companies have been clambering for long-term leases, of at least 49 years, to develop forest lots. Anything less, they say, discourages effective usage and replanting.
Miron Tatsyun, president of the Union of Timber Producers and Exporters, called for a new system of rent for forest lots and changes to the tax laws relating to the industry. He also called for the government to tighten up the joint stock company law, saying loopholes have contributed to a number of scandals in the industry over the past year. The myriad law suits, bankruptcies and accusations of corruption, mismanagement and pollution -- as major players have to fight for control of assets -- have provided dark testimony to the industry's potential.
The conference was organized by Russia's primary business lobby, the Union of Industrialists and Entrepreneurs, the Russian Chamber of Commerce and the Russian Union of Timber Producers and Exporters.
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