"Delovoy Peterburg" ("Business St. Petersburg") No. 154 (821), October 11, 2000
GOVERNORS CUT WOOD FOR WON BENEFIT
On October 12, the Presidium of the Moscow-based State Council of the Russian Federation will discuss the draft Presidential Decree on reinstatement of the Federal Forest Service, abolished in May, 2000 and incorporated in the Ministry of Natural Resources by Presidential Decree No.867.
The management of the Ministry of Natural Resources is arguing that the existing organisation should be preserved, whereas some Regional Governors of the Russian North-West are in favour of the previous system. By losing the battle for an independent Forest Service, the Regional authorities would lose control of both the Regional forest industries and forest utilisation payments.
According to Oleg Arminen, Financial Director of Segezha Pulp & Paper Mill, the old system was preferable, since under it the financing of the Federal Forest Service used to be an independent budget item. With the new system, the funds needed for environment protection activities, reforestation, etc. would have to be found in the local budgets, forcing the District Administrations to pass the burden to the local wood harvesting/wood processing companies.
Some forest users (e.g. Anatoly Zelenenko, Deputy Head of Production, OAO Vologdalesprom Corporation) are not worried, believing that the only consequence of the new organisation would be extended terms of getting approvals of the documents involved.
Andrey Nelidov, Advisor to the Minister of Natural Resources and President of ZAO Wood Handling, has commented that a unified Ministry of Natural Resources could only be feasible if it had control also over wood harvesting and wood processing, enabling the Minister to arbitrate the conflicting issues under the jurisdiction of his various Deputies.
At the same time, the Governor and forest industrialists of Vologda Region are in favour of the old system. According to Nikolay Nevolin, Head of the Regional Forest Management Office, turning the forest management functions over to the Ministry of Natural Resources would results in depredating cuttings.
Dmitry Filatov, Dmitry Motylkov
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