RusForest AB has concluded a sale for three non-core forest lease areas belonging to the Ust-Ilimsk unit, Russia, corresponding to a total of 353,400 cubic metres of annual allowable cut (“AAC”), as the company said in the press release received by Lesprom Network.
The cash consideration for the forest leases amounts to RUB 165.2 million ($2.5 million) including VAT 18%, out of which RUB 140.2 million ($2.1 million) has been received and the rest will be received by the end of the year.
These forest lease rights have previously been recorded as intangible assets at 0-value in the Company’s balance sheet and consequently the total consideration less VAT will be recorded as a profit in 2Q 2016.
After the sale of these lease areas, the remaining amount of AAC in the Ust-Ilimsk unit amounts to 391,560 cubic metres.
RusForest is a Swedish forestry company operating in Eastern Siberia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products and wood pellets.