Five priority projects with the total cost of 25 bln rubles are implemented in Arkhangelsk Region

Prior to the plenary session of Arkhangelsk International Forestry Forum, Ilya Mikhalchuk, the Governor of Arkhangelsk Region met with Victor Maslyakov, the Head of Rosleshoz. The Governor spoke on the implementation of five priority investment projects in the sphere of forest exploitation. The total amount of investments in these projects amounts to 25 bln rubles. As of January 1, 2011 about 6.8 bln rubles rubles were spent on their implementation. The construction of the wood processing complex at the base of Ustyansky Woodworking Company (Ustyansky LPK) is mainly completed while the other projects are at the moment at different stages of their implementation.

Once the investment project has been included to the list of priority projects, the forest areas are passed to the investor without any auction bidding and moreover, during the payback period the forest areas are rented with a 50% deduction of price. The region itself will also make a profit of these projects implementation. It is anticipated that upon the launch of this projects the regional budget will additionally receive 1 bln rubles of tax revenues.

But in order to implement these projects at a quicker rate the region needs the federal authorities to assist it in construction of forest roads. It is worth noting that this issue has been discussed for many years at all levels. It remains of the high importance because all forest areas near the automobile and rail roads are already cut. At the same time taking into account the budgetary gaps at the vast majority of regions it is a very challenging task to raise the funds for construction of forest roads.

That is why Arkhangelsk Region and other forestry regions of Russia repeatedly addressed to the Government of the Russian Federation to finance the construction of forest roads. This work has resulted in assignment by the Federal Forestry Agency in December, 2008 of additional subventions from the federal budget to six regions of the Russian Federation (including the Arkhangelsk Region) dedicated to the improvement of forestry management. These funds were assigned for construction of forest roads in a scope of implementation of measures aimed at firefighting arrangement.

The Arkhangelsk Region received 72.5 mln rubles. In 2010 this program was continued and owing to this the region received 114 mln rubles to construct 33 km of forest roads.

Such an active participation of the state in supporting of the TIC complex during the adverse economic situation encouraged the industry to reach the pre-crisis indices. However, Ilya Michalchuk admits that such support shall be kept in the post-crisis period. Arkangelsk Region will gladly co-finance such projects.