Russia The worlds largest forestry

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Russia The worlds largest forestry
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• Russia is endowed with abundant and diverse
  forest resources
• it comprises nearly 25 percent of the worlds
  forested area (as defined by FAO)
• One quarter of the worlds timber stock
• One of the most bio diverse ecosystems
• One of the largest land-based carbon storage

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Total forested area is estimated at 850 million
hectares

• Only half of this area is commercially accessible
  and about 10 percent is currently exploited
• Siberia alone accounts for 20 percent of the
  worlds forests

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Main Species of Trees in Russia

• Coniferous (pine, cedar, spruce, silver fir, and
  larch), account for 70 percent of total area
• Softwoods (birch, asp, poplar, willow, and
  alder) account for 17 percent of total area
• hardwoods (oak, beech, ash, maple, elm, and
  locust)

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TOTAL ALLOWABLE CUT 558 million m3

• However, the total volume of logging is
  estimated at 183 million m3, including 129
  million m3 of forests administered by Federal
  Forestry Agency (FFA)

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Long term policies of the Russian Government to
improve the efficiency of the forest sector

• increase the share of processed and higher-value
  wood and wood products
• curb illegal export and trade of logs
• apply tariffs and other government measures to
  promote exports of processed products versus
  logs
• Attract foreign investments to improve wood
  processing technology
• adopt a modern legislative base - new Forestry
  Code and unify the national forestry policy.

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TRADE

• Russia is the fifth largest exporter of forestry
  products. In 2005 total wood and wood products
  exports reached a record of 5.7 billion
• Major destinations of Russia forest products are
  China (25), Finland (15) and Japan (10).
• Russia imports of forest products also reached a
  record of 368 million in 2005, mostly high
  value products from Germany (25) and Poland
  (15).

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Major Challenges Facing the Russia Forest Sector

• Forestry Code
• Certification
• Illegal Logging

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Forestry CodeMajor attributes

• Lease time up to 49 years
• Reforestation requirements (timber contractors
  will be required to re-forest their rented
  lands)
• Splitting of national forest management into
  40-50 "eco-regions"
• Expanded use of auctions and other policy tools
  for harvesting timber stands
• Government's willingness to provide
  infrastructure support for timber projects at
  around 200 million
• 80 new regulatory acts needed as part of the
  forest code
• Foreigners and other foreign legal entities will
  not have limitations for leasing forest plots and
  the minimum lease period is 10 years.

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Certification
Two national initiatives for forest certification
in Russia are under the PEFC Council (Program for
the Endorsement of Forest Certification schemes)
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Illegal Trade

• According to the data published by the Ministry
  of Natural Resources, illegal logging is only 0.5
  percent of total official logging in Russia,
  which is 160 million m3.
• However, many environmental organizations
  consider the volume of timber poaching more
  likely between 30 to 50 percent.
• Losses with illegal trade are estimated at 1
  billion.
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