Federal Forestry Agency approved of the allocation of forest areas for Vyatsky Plywood Mill and Kondopoga Pulp and Paper Mill

In Q2 2022, Federal Forestry Agency (Rosleskhoz) approved of two applications for the implementation of priority investment projects in the forest sector. The Agency reviews and approves applications that concern providing investment projects with timber supply areas and granting preferential lease rates.

One of the applications provides for the upgrade of Kondopoga Pulp and Paper Mill (Republic of Karelia). The project is aimed at the comprehensive replacement of the current wood processing shop with a new one as well as the purchase of a wood chip line.

Another approved application provides for the launch of large-sized plywood production at Vyatsky Plywood Mill (an asset of Segezha Group in the Kirov region).

In H1 2022, Rosleskhoz approved of eight applications for the implementation of priority investment projects in the forest sector with an annual volume of forest raw materials of 11.2 million m³.

Investors of approved projects are provided with forest areas for lease without the bidding procedure as well as preferential lease rates: they only pay 50% of the rates stipulated by the Russian Government.

Moreover, due to the restrictions imposed by unfriendly countries, the Russian Government extended the period for the implementation of investment projects in the timber sector by one year.