ST. PETERSBURG, Oct 15 - Investments in Russia's timber industry are expected to reach around 850.9 billion rubles by 2004, First Deputy Minister of Industry, Science, and Technology, Sergei Mitin, said at an international timber conference in St. Petersburg, Tuesday. He added that last year, 17 billion rubles were invested in the timber industry. He outlined a three-step government program to be in effect until 2015 that would attract investment to the industry. The first step, which would last until 2005, would include changing laws, introducing new products, and changing customs policies. The second step, until 2010, would focus on raising the quality of products and upgrading timber-processing plants. The third step, until 2015, would focus on increasing production capacity, and increasing exports. As part of this three-step program, five paper mills would be constructed in Russia, at the cost of U.S. $1 billion each. Finland, China, and Japan are currently the primary paper product exporters to Russia. In regard to these countries, Mitin said, "Either they invest in Russia's timber industry, or we limit their access to Russian markets." Russia currently exports around $4.3 billion of lumber and timber products, 5% of output. Russia is capable of producing 700 million cubic meters, worth $100 billion, Mitin noted, without providing comparative figures. He added that although Russia's exports now account for less than 3% of the world's timber market, it controls 25% of the world's forest reserves. Last year, Russia produced 5.3 million tonnes of timber, he said without providing any other figures. (31.6703 rubles - U.S. $1).