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Since 1st January the rates for rent of forest areas in Russia will increase by 44%

The government has increased the rate of rent for wood harvesting by 44% since January of the next year. In 2019 the coefficient of increase will be 2.38, and in 2020 - 2.62. Coefficient for rental has already been increased by 0.7, to 1.51 in 2017. The government raised the rates without taking into account the opinion of the Ministry of Industry and Trade.

"The strategy for the development of the forestry complex up to 2030, as well as the plans and measures for its implementation, were compiled on the basis of current rates of payment for rental of forest areas" said Maxim Pozdnyakov, head of the Forestry, Pulp and Paper and Woodworking Industry Department of the Ministry of Industry and Trade. He noted that his department has informed government that, current increasing would be difficult for lumber companies and it difficult to implement already planned projects announced in the Strategy.

"Professional community was not took into account again" says Valery Pisarev, General Director of the Cherepovetsles. “The woodworkers provided their calculations, argued that such a sharp increase in rates is simply absurd. With such rates, investments in the forest complex will not go. Today about 40% of logging companies are unprofitable. Increasing rates will only exacerbate this situation". As a result, according to the expert, only large vertically integrated companies and pulp and paper mills will survive in the timber industry.

"We do not support the increase in rates," said Vice-President Segezha Group, head of the Forest Resources Division Maxim Pisarev. “For us, this is a significant increase in the cost of using the forest and a serious burden on the budget. According to experts of the industry, this decision would not cause rejection by forest users, if from the side of the Federal Forestry Agency this change was accompanied by the state participation in financing forest management works and planting".

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