Push for privatization of forestry industry in Russia

[Dover]

The new Forestry Code envisages private ownership in the industry

February 03, 2004

MOSCOW — Briefing the press on the new Russian Forestry Code, Trade and Economic Development Minister German Gref noted that the provisions of the new legal document envisage private ownership in the industry. “The Code stipulates private-property institution. This property right may accrue from long-term lease on timber land. In such conditions, and if the lessees use such property for 15 years and fulfill all obligations pertaining to the lease, then such tenants will receive the right to own such plots of land,” he added. Gref, however, noted that this particular provision has yet to be adopted, adding that he expects the provision to generate much discussion, including the possibility of its amendments, Izvestia reports.

Meanwhile, Gref also noted that proprietary right over forestry belongs to the Russian Federation, while the management right belongs to regional administrations, which are to arrange tenders for forestry usage, draft lease contracts and exert control over their fulfillments.

The new code also stipulates long-term lease up to 99 years for private use, including by foreign citizens and organizations.

Gref stressed the great economic potential of the forestry industry, adding that new Code will help to use the potential to increase the country’s GDP.

The Russia Journal

Source URL: http://www.russiajournal.com/news/cnews-article.shtml?nd=42350