Greenpeace Russia predicts mass closure of logging enterprises in 2014

In 2014, in most regions of the so-called heavy-forested zone of Russia several thousand enterprises will close, as said in the Greenpeace Russia Forestry Forum release.

The reason for this forecast was the situation at the enterprise Svetlozerskles (belongs to Solombalales holding) located in the Arkhangelsk region. According to news agencies, the company’s debts to employees amount to about 6 million roubles.

According to Greenpeace Russia experts, the reason for the poor situation at this enterprise is the practice of forest management established in the Soviet years in Northern regions: pioneering exploration of taiga without any chance of restoration of valuable softwood resources after the exhaustion of economically accessible forests.

Such policy results in sharp reduction of harvesting and subsequent closure of logging enterprises. Since the economic availability of wild forests is highly dependent on market, in the periods of economic growth timber industry lives a relatively comfortable live even in the conditions of highly degraded forests, but in the periods of economic downturn it is in extremely difficult position.

In the period of favourable market situation the price for sawlog and pulpwood covered growing expenses on transportation from the remote areas. But now, amid the growing economic crisis, this practice is becoming increasingly unprofitable, says Greenpeace Russia. Sites economically suitable for timber removal are almost absent, as nobody was taking seriously the reforestation issue.