May 09, 2008. /Lesprom.com/. Cathay Forest Products Corp., announced that the Ministry of Industry and Power Engineering of the Russian Federation has included Cathay's Russian joint venture timber project in the list of Priority Investment Projects. This policy is referred to as the Priority Investment Program, which governs tariff exemptions. As detailed in Decree #419 of the Government of the Russian Federation favourable treatment has been awarded to Cathay's subsidiary, DalEuroLes for future timberland development projects. Favourable treatments include obtaining more harvesting concessions and export tax exemption for downstream processed wood products. Subject to further approvals by the Federal Government, DalEuroLes could enjoy tax exemption on the export of roundwood. DalEuroLes is also being included in the list of companies qualified to apply for a refund of between 50% to all of the costs of constructing the infrastructure at its existing and future timber properties such as bridges, roads and landing sites. The Company has also engaged forestry consultant firm, Indufor to prepare a study on the current and future development of the Russian timber property. Indufor is an independent Finnish consulting company. Cathay Forest is a forest products company manages approximately 300 thousand hectares of standing timber properties and fast-growth, high-yield poplar plantations in China and Russia. Cathay Forest is building a world-class forest products company through a customer base that includes the domestic Chinese pulp and paper industry as well as a variety of other wood products industries.