world news - 28.08.2007
Russia: Forest concessions granted for large investment projects
The government of Kirovsk region (Russian Federation) recently
announced that in 2008 forest concessions may be awarded without
auction to key investors in the regional timber industry. Following the
new Forestry Code’s adoption, the Russian government passed a
regulation on priority investment projects in forest development. The
regulation is a very important step in stimulating investments in
timber-rich regions such as Kirovsk. According to the document,
companies that carry out large investment projects in forestry and
wood-processing infrastructure may sign a lease contract without having
to participate in an auction. The list of priority investment projects
includes construction or reconstruction of forestry roads, building or
upgrading of woodworking and other forestry facilities, capital
investments larger than 300 million rubles (over 8.6 million euro),
etc. Further regulations will be adopted soon.
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