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21 November, Wednesday

Ufa   °

Forest industry development strategy was discussed at republican Government meeting

Economy/Business

UFA, 6 September 2018. /Bashinform News Agency/ translated by Tatiana Aksyutina/.

Yesterday, the Head of Bashkortostan Rustem Khamitov held a meeting of the Government RB, where the Development Strategy of the regional timber industry complex was considered until 2030.

“It is of common knowledge that the forests constitute more than 40 percent of the republican territory. But at the same time, the share of forest products in the structure of industrial production is very low — 1.6 percent. This is less than similar indicators of other regions, similar to the republic in terms of reserves and logging,” said the head of the republic. “The share of the timber industry complex in the consolidated budget revenues amounted to half a percent or slightly more than 1 billion rubles.”

The head of the region marked that Bashkortostan ranked fourth in terms of timber reserves, the first in the Volga Federal District in terms of forest planting volumes. At the same time, in terms of shipped goods, the republic took the fifth place and was in the 13th place in the district according to the specific efficiency index (the ratio of the volume of shipped products to the estimated cutting area).

“We earn only 1,5 thousand rubles per cubic meter of wood. Although even round timber is sold now at a price two or three times higher”, noted Rustem Khamitov. “It is clear that the return from the timber industry complex in the regional economy should be much higher. The reserves of the republic's forest resources, capacities for their processing can provide not only republican demand but also become an important item of non-resource exports.”

The task is set in the discussed Strategy to increase the output of timber industry products threefold, to increase its share in the industrial production to three percent.

According to the Minister of Forestry RB Marat Sharafutdinov, in recent years the volume of timber harvesting has increased three times — almost to 3 million cubic meters in 2017. The area of reforestation reached the level of the clear felling area with an increase of almost one and a half. At the same time, the potential of the republic's forests is not fully used.

As calculated, the total volume of investments for the projects' implementation will amount to about 83 billion rubles. The expected direct economic effect from the implementation of the Strategy without taking into account indirect revenues is at least 95 billion rubles, including more than 50 billion rubles in return to the budget.

The Minister of Industry and Innovation Policy RB Alexey Karpukhin spoke about the introduction of modern technologies in timber processing to increase the redistribution of raw materials and a further broad introduction of products into the construction sectors, production of final products — furniture, finishing materials, paper and packaging, including export products.

The head of Bashkortostan set a task for the industry leaders to attract investment more actively.

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