This is the first issue of Forest Update English version. The main idea was to deliver relatively brief and quick information on forest issues in Russia, but we also are eager to publish international information on forests. We will appreciate your information and comments. Please send them to Olga Berlova, e-mail press@cci.glasnet.ru, Forest Update English version editor. We plan to make this issue to be once a fortnight, closer to fall we may come once a week.

MONEY

Pilot credit for Russian forestry The World Bank started practical work on preparing pilot forest credit for Russia. Total pilot sum is $60 mln. Money will be distributed to Federal Forestry entities and among three regions selected on competitive basis: Leningrad, Krasnoyarsk and Khabarovsk. The following fields are considred crucial for sustainable forestry introduction: legislation; forestry informational support; forest protection strategy against fires, pests and diseases; rules of sustainable forestry; forest market prospectives. Right now four expert gruops are working in the regions. Forest market prospectives are investigated by finnish firm Jaakko Perju. Legislation, forest protection strategy against fires, pests and diseases are analised by norwegian experts; rules of sustainable forestry - by Luxemburg experts. The results of the work will be presented at St. Petersburg on international conference. In case of successful pilot project run Russian forestry may receive core credit of $200 - 250 mln. There is an agreement that NGO will participate in the process, but by one exception, it has not been implementad yet.

KARELIAN OLD-GROWTH

Another Finnished company joined old growth logging moratorium UPM Kummene joined moratorium on Karelian and Murmansk oldgrowth logging announced by largest Russian forest buyer ENSO at Kuusamo Depending on Trees conference (October 1996). This moratoruim is to last a year until forest inventory will be done and results will be evaluated, it also may be prolongated. ENSO was forced to introduce looging ban because of consumer protest campaigns in UK, Netherlands and Germany. Sveral other timbering groups plan to join the moratorium in future.

Negotiations on forest inventory

Meeting of Karelian and Finnish officials, Karelian Scientific Center of RAS represetatives, local government and NGOs on starting Karelian forests inventory was held in Kostomuksha on June 16 -18 NGO representatives from Russia, Finland, Sweden and Germany pointd out several problems. - the inventory will not be done for all areas indicated on NGO map in 1997 field season, thus pledge made in Kuusamo by ENSO, Finnish Environmental Ministry, and Finnish WWF will remained unfulfilled. - inventory will be done only for limited areas of planned national parks Tulos, Koita-Yoki, and Kalevala. It is provided that after inventory the areas may only shrink, not broaden. - the major outcome of spending significant money amount in 1997 will be scientific justification instead of specific project papers necessary for decision making and national park establishing. This approach may make the process endless. - the NGO participation degree in the process is still unclear - active logging in the old-growth planned for national parks are stil going on. The participants visited barbaric clearcut made by Finnish company Vainionpaa. The clearcut area was very important for biodiversity and ecosystem. In further discussion some progress has been done: Karelian officials stated that - that NGOs will participate in 1997 forest inventory which will be done for at least Koitayoki, Tulos and Kalevala planned national park areas. - loggings at the planned for inventory territories must be stopped, otherwise NGOs feel free to act - NGO representatives' proficiency in forest issues was acknowledged

BUSINESS DOES NOT WANT TO MESS WITH NGOs

In early June Russian NGO Forest Club representatives negotiated with Mr Djurba, provider of forest supply for Svetogorsk pulp and paper mill. Djurba delivered mills owner, Sweden company Tetra Laval message that company does not want any conflict with NGOs. He stated that Svetogorsk PPM is ready to join the old-growth logging moratorium as soon as Forest Club present old-growth marked area map. Svetogorsk PPM will be extremely carefull in buynig timber from Karelia, which offer to PPM has increased lately. Forest Club experts connect this offer growth to moratorium on oldgrowth logging introduced by foreign companies.

Finnish Environment Minister claimes devotion to old growth but leaves way to retreat

On June 27 during Erth Summit NGO representatives met Pekka Haavisto, Minister of Environment, Finland. Answering SEU's representnative questions on Karelian issues he atted that:

• he will try to ensure Russian NGOs participation in the inventory process, but refused to answer, if he will accept results of inventory done without NGOs participation. Mr. Haavisto also was in favor of NGO
• proposed Kalevala park plan. He also promised NGOs free access to information on any finnish activities concerning old growth. Changes to come?

• the necessituy of decision on protected area network in Karelia according to international agreements
• the necessity of strenghtening protection regime in I group fo- rests and bringing it close to national parks
• the government is ready, social atmosphere taken in account, to qoit loggings at the possible old-growth areas defined by NGOs
• the government is ready to do inventory and agrees with NGOs par- ticipation in the process. The next meeting is preliminary scheduled for 1997, fall in Petrozavodsk.

NATIONAL PARK THREATENED GOLD FEVERED OFFICIALS

Another oldgrowth area - in Komi this time - is under threat. First Russian territory on the list of UNESCO Heritage includes Ugid-Va national park, Pechoro - Ilychsky Zapovednik and its buffer zone of total 3.2 mln ha. Its a habitat of 47 mammal species, 204 birds species, 16 fish species. Endangered species also live there. Main rivers of West Urals origin there, the Komi people depend on these forests and rivers. The Republic government is trying to cut 200 thousand ha from the Ygid-Va park - the most fragile and valuable one. They intend to start golmining there. Greenpeace experttts say this mining will not pay off on any occasion. Tthe republic hed Yuri Spiridonov already issued decree on national park boundaries specification. He had no legitimate power to do that. The goldmining project in Kizjim river basin exists already. The Save Pechora Committee, SEU and Greenpeace Russia published demand on republic government to call off the decree and halt all preparations to industrial invasion of national park territories. It is also stated that UNESCO Heritage status gives opportunity to promote traditional livelyhoods and environmental tourism.

*July 7. Kalevala, Karelia. Greenpeace activists finished marking oldgrowth of 15 thousand cubic meters of timber logged in Kalevala by

Issued by:

• Olga Berlova press@cci.glasnet.ru
• Alexey Grigoriev grig@glasnet.ru
• Vladimir Zakharov forestnews@glasnet.ru