OREANDA-NEWS. October 05, 2010. Prime Minister of Russia Vladimir Putin has held a meeting in Syktyvkar on implementation of investment projects in forestry. In Moscow he has taken part in a round table discussion concerning development of timber processing industry. A number of governors of forest regions of the country including Head of the Republic of Karelia Andrey Nelidov have taken part in the meeting and in work of the round table.

At the meeting in Syktyvkar Vladimir Putin has paid attention that interest of business to timber industry grows constantly, and the primary goal of the state is to let all interested investors work in the forest. If the project meets the criteria established, business should have no problems neither with rent of forest land, nor with solution of other questions. According to the Prime Minister of the Government of Russia, projects concerning deepwoodworking mean new and well-paid workplaces, more revenues in budgets of all levels and often they are the only chance to revive and and provide worthy life in forest settlements and small towns. To the full extent it concerns Karelia, too.

Vladimir Putin has reminded, that in 2006 there has been formed a conceptually new legislative base for complex forest development. The branch receives new investments, indeed. In Russia there have been implemented 12 large projects with about 34 billion roubles of total volume of capital investments. It has been created more than 4,000 new workplaces. In 2010 it is planned to complete nine more projects in various regions of the country, and in total under implementation there are 91 projects.

However, there are problems constraining development of timber industry. Participants of the meeting in Syktyvkar and of the round table in Moscow discussed unresolved issues of development of the branch.

Making comments on results of his two-day trip, Andrei Nelidov mentioned that Prime Minister of the Government of Russia Vladimir Putin today pays lots of attention to timber industry of the country. "If forestry would have been developing as a priority we could have become natural monopolists not only in oil and gas, but also in such major resource as forest – Head of Karelia said, – and proceeding from how the Prime Minister set questions we comprehend that forestry is looking forward to good changes." According to Andrei Nelidov, Russia today conciders preferential systems of relations between business and the state at large investments into wood processing, a number of technical issues concerning forest exploitation and forest management which solution will help essentially in development of forestry is negotiated.

Speaking about work of forest industry in Karelia, Andrey Nelidov has reminded that there was time when timbermen provided 60% of revenues of the republic, while today this parameter makes only 15%. Innovations discussed at the federal level will promote growth of incomes from forest exploitation. In the opinion of the Head of Karelia, a priority direction for the republic is modernization of existing woodwoeking enterprises that will make it possible to double to even triple profitability of enterprises assignments to the budget without increasing og logging. First of all, matters concern radical reconstruction of Segesha Pulp and Paper Mill and implementation of the Polar Bear on its basis, continuation of modernization of Kondopoga, Inc., renovation of some timber yards in regions of the republic.