Canadian businessmen interested in investments in Russian forestry

Sep 28, 2006. /Lesprom Network/. Deputy director of Federal forestry agency of Russia Boris Bolshakov met with representatives of Canadian pulp-and-paper industry on September 27, press-service of the ministry of natural resources reported. The parts discussed the state of Russian forestry and perspectives of its development by foreign investors. Canadian delegation was represented by heads of Canadian largest pulp-and-paper companies - Tigercat, Cascades, Kruger, Cerba and GL&V. Bolshakov noted that from 2007 control of forest resources will be transmitted to constituent entities of Russian Federation. According to him, it demonstrates “enlargement of democratic principles in forest utilization”. The head of trade mission of ministry of foreign affairs of Canada Gill Couturier emphasized that decentralization of forest management in Canada has been existing for a long time. According to him, Canadian businessmen are interested in investments in Russian forestry, joint development of forest resources and their processing in Russia. Informing the Canadian delegation about situation in Russian forest industry Bolshakov said that from 530 million cubic meters of forest that can be harvested without harm for the environment about 120 million cubic meters are logged annually. About 50 million cubic meters are exported as round wood. According to Bolshakov, the adoption of Forest code may change the situation fundamentally and attract investments for enlargement of periodic yield, development of plywood, furniture and pulp industries in Russia. In 2007 Canadian delegation plans to visit Irkutsk region and Khabarovsk kraj. The both regions are rich in forest resources, but percent of utilization of periodic yield is low. In Irkutsk region only 17.6 million cubic meters from 55.7 million cubic meters are logged. In Khabarovsk periodic yield amounts to 24.1 million cubic meters of which only 7.0 million cubic meters are used.