The Official Karelia
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Social and Economic development of the Republic of Karelia in 2010

  Modernization of the Economy

    and Construction

    Small And Medium

    Industrial Policy

    Industrial Policy

    Forest Resources

    Mining Industry


    Energy Complex

    Agroindustrial Complex


    Natural Resources
    and Ecology



Timber Industry Complex

As a result of cooperation of the Government of the Republic of Karelia and other constituent entities of the Russian Federation with federal executive authorities decisions focused on support of the timber processing complex were made, in particular:

  • solution of a question concerning increase of rates of round timber export customs duties is postponed untill 2012;
  • rates of payment for forest exploitation are preserved;
  • decisions on assignement of financial aid from the federal budget to regions for construction of wood roads were made.

To form the best structure of the balance of timber production and processing in the second six months work concerning increase of the ability of enterprises of the timber processing complex to provide themselves with rawwood proceeded. Executive authorities of the republic have taken part in development of the Strategy of Forest Industry Development in the Northwestern Federal District, providing coordination of Wood plans of bordering entities of the Russian Federation that will allow to avoid construction of new processing capacities that would not be provided with resources.

The Government of the Republic of Karelia in the fall of 2010 has made a decision on development of the Arrangement of Forest Transport Infrastructure within the Territory of the Republic of Karelia target program. Interdepartmental working group on development of the Concept of the Program is established at the Ministry of Nature Management and Ecology of the Republic of Karelia. At the first stage financed from the budget of the Republic of Karelia it will work on development of methods of inventory and creation of the register of non-vehicle wood roads within the territory of the Republic of Karelia.

Implementation of two priority investment projects of the Republic of Karelia in the field of forest development proceeded: reconstruction and modernization of Segezha Pulp And Paper Mill, Inc. (Polar Bear project) and development of logging and woodworking of Kostomuksha Building Company, Ltd. Besides, work on implementation of the first in Russia project of production of oriented strand boards continued.

In November 2010 the Government of the Republic of Karelia has held a session with timber land tenants concerning efficiency of exploitation of forest resources in long lease and solution of priority tasks concerning increase of their share in economy of the republic.

Currently, work of the forst industry of the republic is not equitable to economic interests of the state as a proprietor of forest resources. It is, first of all, unprofitability of most of the logging enterprises, debts on rentals for exploitation of forest resources, tax payments, low tax loading, absence of own production assets, non-fulfilment of parameters of business-plans and obligations within lease contracts.

In the fourth quarter of 2010 together with tax bodies analysis of the basic parameters of financial and economic activity of timber land tenant enterprises was conducted. On results of this work effective tenants of timber land and inefficient forest exploitators were identified.

Currently, work is conducted with inefficient tenants to make them achieve cost-effectiveness, discharge the tax and non-tax payments indebtedness, as well as increase in tax revenues in the consolidated budget of the Republic of Karelia.

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Created: May 23, 2010. Last updated: July 11, 2010.
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