Russia to extend deadlines for priority forestry projects, freeze logging fees

MOSCOW. March 17 (Interfax) - Russia will impose a one-year freeze on increasing fees for forest use in order to support the forestry sector, as well as extend deadlines for the implementation of priority investment projects in forest development and increase the duration of loans for forestry companies from the Industrial Development Fund (IDF) to five years.

These and other measures were discussed at a meeting on the situation in the forestry sector chaired by Deputy Prime Minister Viktoria Abramchenko, her press service reported.

The support measures being prepared also include expanding the list of border checkpoints for lumber exports so as to boost exports, and a one-year moratorium on scheduled inspections.

Priority support will be provided to projects aimed at import substitution of wood products, the press service said. After the meeting, the Industry and Trade Ministry was ordered to draft an import substitution program for the forestry sector.

"Imposed sanctions have highlighted points of growth for the forestry industry. The world market is seeing strong demand and rising prices for forest products, and inside the country we have all the capabilities to create new production facilities, including chemicals and fluff pulp, from which, for example, baby diapers and hygiene products are made. It is clear that our forestry industry is capable of rapidly increasing production of raw materials for such products. I have instructed the Industry and Trade Ministry to immediately create an import substitution program for the forestry sector," Abramchenko was quoted as saying.

There are plans to set up production of associated products for wood processing, such as chemicals and rolling stock to transport them, equipment, and spare parts for furniture fittings. The Industry Ministry will do an analysis of the size of the market for these products, and an action plan has been approved to support companies involved in import substitution programs, the press service said.