The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organisation (FAO) of the United Nations have jointly carried out a comprehensive study of the forestry sector in the Russian Far East, aiming at developing a Roadmap and Action Plan for fostering investments in value-added forest industries. Indufor had the pleasure to be the Consultant in the project.
Russian Far East accounts for one third of Russian territory and holds about 9% of forest resources globally. Moreover, it borders three strong economies (China, Japan and South Korea), which are all dependent on wood product imports. However, the region’s role in global production and trade of wood forest-based products is very low. Long term view to forests as a renewable natural resource is lacking and few companies are committing to long term sustainable investments.
Tapani Pahkasalo, Head of Forest Investment Services Consulting at Indufor, presented results at the Investment Forum in Vladivostok on October 23rd 2013. The Forum, organized by EBRD and FAO, brought together different stakeholder groups, including project initiators, governmental officials from the federal and regional levels, forest industry companies, potential investors, NGOs, and academia representatives.
Main recommendations and actions for fostering forest industries in the Russian Far East were:
1. Improving legal frameworks and stability
2. Better forest resources inventory data
3. Development of modern forestry infrastructures
4. Supporting services in human resources development, and
5. Sustainable forest management.
Indufor would like to thank EBRD, FAO, government authorities, forest industry companies, NGOs, and academic representatives for productive cooperation and inputs in the Roadmap development.