Rosleshoz authorized to provide forest areas for priority investment projects

On December 29, 2022, the President of Russia signed a law on authorizing Rosleshoz (the Federal Agency for Forestry) to provide forest areas for lease in the framework of the implementation of priority investment projects.

According to the law, Rosleskhoz was also authorized to perform regulatory compliance reviews of investment projects in the forest sector. The necessary changes were made to the Forest Code as well.

“The new law amends the Forest Code introducing a ban on sublease and transfer of lease of leased forest areas intended for timber harvesting. Only legal entities and sole proprietors possessing own production facilities will be allowed to participate in the bidding procedures for the right to lease. These amendments will allow to avoid abuse by unfair forest users of state aid intended for the implementation of investment projects. They are also aimed at the prudent use and protection of Russia’s forest resources,” said Ivan Sovetnikov, Head of Rosleskhoz.

The document also stipulates the conditions applicable to forest users for renewing lease agreements without bidding.

Besides that, the law authorizes public forestry institutions to sell timber to citizens for their own needs and to institutions making purchases under laws 44-FZ and 223-FZ without the mechanism of commodity exchange trading.