Ministry of Trade Plans 50% Forestry Contribution to GPD Increase by 2030
Denis Manturov – Minister of Industry and Trade – says Russian Ministry of Trade plans to achieve 50% increase of forest industry contribution to GDP by 2030.
“The forestry makes small contribution to the economy despite the steady production volume growth. It’s impossible to change the situation without new approaches that are incorporated into 2030 Forestry Development Strategy”, - Denis writes. His clarified that Ministry of Trade partners with related associations and key market players to finish the strategy development. “Our long-term goal is to increase the forestry contribution to GDP by 50% by 2030 with the production volume increase as well as growth of added value per cut timber item”, - he notes.
Ministry of Trade also noted the forestry has a number of pending matters. However, he believes “we’ve started moving ahead about ten years ago by creating investment project portfolio”. “We have completed 29 of them and 94 are in progress. This is really a large-scale activity with 300+ billion RUR investment”, - Denis comments.
Ministry of Trade has prepared the investment selection process to shift the accept “to complex raw material usage”. “We need to raise the minimum investment threshold from 300 million to 500 million RUR for the projects on capacity modernization and to 750 million RUR for the new facility construction”, - Denis clarified.
Denis added that we shall change the forest plot lease privilege provision to decrease the risk of investors unfulfilling their obligations. First, we shall provide the forest plots only after the launch of timber processing facility. Second, the privilege will last from three to ten years depending on investment volume”.
The Ministry of Trade Strategy priority tasks include accessible raw base, development of personnel, improvement of technical and scientific potential, as well as industry management system enhancement. “We anticipate the strategy will enable us to create the updated portfolio of the most efficient advanced processing facilities by including additional forest plots in turnover. This will permit us to set government support priorities”, - finished Ministry of Trade Head.