The Far East Development Fund will create a control system in the forest industry

The Far East Development Fund is engaged in the creation of a system that controls operation of the forest industry entities. This was reported to media by Yuri Trutnev, the Deputy Prime Minister and Plenipotentiary Envoy of the President of the Russian Federation in the Far Eastern Federal District (FEFD).

On July 16 and 17, the official held a series of meetings in the Transbaikal Territory, where he instructed to develop mechanisms that would allow controlling the development of forest compartments and assess the effectiveness of woodwork projects in the Far East.

“There are many problems in the forest sector, not only in Transbaikal, Buryatia; there are problems in the Russian forest industry [as a whole], and they need to be resolved. <...> We are trying to create a system that controls the movement of timber from the moment of its cutting; and this [creation of such system] is carried out by the Far East Development Fund," said Trutnev, answering the TASS Agency question.

The Plenipotentiary Envoy noted that the Far East Development Fund has the necessary experience, it is "specialized in complex services." "The Fund had experience in developing services for mariculture; we also had a lot of problems there: even though we have a lot of shores, still our mariculture is poorly developed; at the same time, when we try to put fishery zones to auctions, it appears that we have no such zones, they are not formed or there is no related permission, or anything else prevents us to do all that. The Far East Development Fund put it all together, which resulted in sharp increase in value of tendered zones, that is, the country started receiving more money, and simultaneously the number of zones provided for use increased sharply, said Trutnev. “I believe, the job is done well.”

According to him, the Fund is currently doing similar work in the forest sector. "We need to assemble the whole chain, starting from the location the tree was cut down in to the moment when it arrived for processing or export," said the Deputy Prime Minister. He noted that the Government of the Russian Federation decided to increase export customs duties step-by-step: this year they amounted to 40%, next year they will reach 60%, and finally 80%. "I looked at the documents that colleagues from law enforcement agencies provided to me: there is no direct correlation between the increase in export duties and processing volume gain or increase in customs payments, that is, the chain is torn somewhere, and we need to figure out where exactly," said Trutnev.

The official noted that one of examples of difficulties in the forest sector is the situation in the Transbaikal Territory, where, according to him, "deformations in the forest sector are most clearly visible." "At the [Russian-Chinese] border, there are points of transfer of the stolen forest; in the old days they were dead-end tracks, wastes smoulder there, people can’t present documents for the forest – you can find there a lot of “miracles”," noted Trutnev.