1. ECONOMIC GUIDING LINES OF FOREST POLICY OF RUSSIAN FEDERATION Anatoly Petrov Rector, Professor, Dr.Ec.Sc. All-Russian Institute of Continuous Education in Forestry Finnish-Russian Forest Summit November 14, 2012 Helsinki

2. FOREST POLICY PROVIDES WITH THE CONDITIONS AND GOALS FOR FOREST SECTOR SUSTANAIBLE DEVELOPMENT Slide 1 Forest Policy Political decisions making on base of agreement between public authorities, private business and society Conditions and goals EconomicSocialEcological

3. Economic guiding lines to develop forest sector on sustainable basis 1.Increase of forest income derived from forest use. 2.Programme – target organization of forest planning at the different levels of forest administration and management. 3.Forest plans are to based on estimation of forest resources economic accessibility. 4.Forestry operations are to be estimated by output and services taking receipt and paid. 5. Private business using forest is to be financially responsible for forest conditions, protection and guarding. 6.Forest areas are to be economically evaluated. Slide 2

4. Branch and regional priorities provide with forest income growth Slide 3 Forest income growth Branch priorities Regional priorities Competitive advantages of branches and productions Competitive advantages of regions Forest products markets monitoring Forest resources inventory and monitoring

5. Forest plans us a tool of forest administration and management Slide 4 Kinds of plansLevelPlanning period Target 1. Long-term strategy of forest sector development Federal10-20To create the effective innovative branch and regional structure of forest sector 2. Branch programmes of forest sector development FederalUpto 5To meet the demands for forest products and service using competitive advantages 3. Regional programmes of forest sector development (forest plan of the subject of Federation) RegionalUpto 5Sustainable management of forest resources 4. State programme of forestry development FederalUpto 3Budget planning and allocation of financial resources 5. Business planning in private forest sector RegionalPrivate decision Innovation Technical and technological development

6. Estimation of forest resources economic accessibility as a tool of forest planning Slide 5 Demand for forest products and services Economic accessibility of forest resources Forest resources potential Production resources to use forest Production resources to reproduce forest

7. Classification of forest resources for planning needs Slide 6 Potential (biological) resources Real (physical) resources Losses Forest inventory data Economically accessible resources Unaccessible resources Criteria of economic accessibility Rates of production losses

8. Slide 7 Forestry produces the output and services Forestry Forest regeneration and growing Output Forest protection Forest guarding Services Young stands after regeneration Forest areas after taking care of Output and services are produced by commercial enterprises. State authorities take receipt and pay output and services

9. Slide 8 Private business as leaseholder is to be responsible for forest conditions State budget system Forest use fee (stumpage, leasing) Financial resources directed to reproduce, protect and guard forest Fee for leased area Fee for factual harvested resources Silvicultural output Services

10. Slide 9 Forest area under leasing is to be economically evaluated Forest inventory data Forestry operations and transport system development Capitalized price of forest land At the beginning of leasing agreement At the end of leasing agreement Economic normatives and methods

11. Slide 10 Forest management under balance of economic, social and ecological goals 1 2 3 1 – area of economically effective decisions 2 – area of socially responsible decisions 3 – area of ecologically demanded decisions – area of optimal decisions

12. Thank you!