RUSSIA'S FORESTRY INDUSTRY IS DESPERATE FOR INVESTMENT, OFFICIALS SAY

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MOSCOW, November 12 (RIA Novosti) - Russia's forestry industry needs at least 2 billion dollars in annual investment, argues Valery Roshchupkin, in charge of the Federal Forestry Agency. According to him, the actual investment in the sector is now $25 million or even less.

Speaking at a Moscow press conference Friday, Mr Roshchupkin said the new Russian Forestry Code's provision on long-term lease of forestland was meant precisely to encourage heavier investment in the industry. "Long-term lease is about the attraction of investment and of civilized forestland users," he noted.

Under the new Forestry Code, forestlands shall be leased out to the highest bidder, from among those who have passed preliminary selection, the official said. He acknowledged, however, that this clause required further elaboration so as to make it clear what criteria the selection would be based upon.

Mr Roshchupkin also reported that the new code revised the powers of forestry cooperatives. These will continue their operations as before, but will be stripped of all decision-making authority, he said, explaining that the measure was aimed at curbing corruption.

Russia abounds in forest resources, but they are used rather inefficiently, Mr Roshchupkin remarked. "Our primary task is to ensure efficient use of forest resources," he emphasized, adding that this was achievable precisely through long-term lease of forestland.

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