In more bets – Kommersant

Timber merchants are dissatisfied with the government’s plans to raise rental rates for the use of forest plots from 2024, while earlier the authorities promised to reduce fees from businesses. The Ministry of Natural Resources notes that the revision of the methodology for calculating the rent will not lead to a significant increase in payments. But, according to industry estimates, rental rates in the European part of the Russian Federation may increase in some cases by 80% or more.

As it became known to Kommersant, some timber companies turned to the Union of Timber Manufacturers and Exporters with a complaint about the upcoming increase in rent for timber. On April 10, the Government of the Russian Federation made changes to the methodology for calculating rental rates, which should come into force on January 1, 2024. They assume a change in the average coefficient of liquid wood stock per 1 hectare of cutting area. The rates also change taking into account the distance to the nearest point, from where timber can be exported by paved roads, rail or water transport.

Andrey Frolov, Vice-President of the Union of Timber Manufacturers and Exporters, confirmed receipt of applications from the regions and noted that the organization is now preparing calculations to substantiate its position when applying to the government. According to preliminary estimates, the increase in rental rates due to changes in the methodology will be from 3% to 80%, depending on the region. The most significant rise in prices will be in the European part of Russia, he explained. For example, according to the calculations of the Vologda timber merchants, the increase in fees will be from 75% to 90%, and taking into account the indexation of the rate from January 1, 2024 by 4.7%, the rent in the region as a whole will double in price.

Yuri Isupov, senior vice president of the Vyatka Chamber of Commerce and Industry, told Kommersant that the application of the new procedure for calculating rent will increase payments in some cases by up to 30% and will especially hit areas remote from the railway, since it is proposed to calculate rates depending on the distance not from the railway roads, as now, but from paved roads, that is, even gravel.

At the same time, Rosleskhoz explained to the regional forestry departments (the document is at the disposal of Kommersant) that the changes relate to rates for clear-cutting as part of recreational activities in forests. The Decree also applies only to new lease agreements for forest plots. However, Yuri Isupov notes that it is not clear from the clarification of Rosleskhoz what kind of clear-cutting can be discussed in recreational forests. The resolution itself does not mention this, nor does it mention that we are talking about new contracts, and besides, the letter from Rosleskhoz is not a regulatory document.

At the end of last year, the government decided to calculate the rental rate based on actual cutting, which was supposed to reduce business costs amid the restructuring of export logistics due to sanctions. However, this mechanism has not yet been implemented.

The Ministry of Natural Resources explained to Kommersant that Decree No. 578 clarifies the differentiation of the liquid stock of timber, which “will level competitive conditions depending on the qualitative and quantitative characteristics of forests.” The changes are aimed at reducing the imbalance in determining the distance coefficients, which take into account the proximity of the forest area to public roads with hard surface, the ministry notes. They indicate that, according to experts, no tangible increase in the financial burden on forest users is predicted. The ministry also explained that a draft order of the President of the Russian Federation on support in 2023 for enterprises of the North-Western Federal District is being prepared there.

Alexander Dyatlov, deputy chairman of the regional assembly of Arkhangelsk, says that the new methodology significantly changes the economy of logging. For example, the decree cancels the reduction factors that were used for plots with a stock of wood less than 100 cubic meters per 1 hectare, and increasing ones begin to be used when the stock is already over 125 cubic meters per 1 hectare (instead of the current 150 cubic meters). Increased coefficients themselves. He calls the new methodology illogical. “It turns out that when sending timber cargo by rail and water transport, the distance is measured to points where loading into wagons or barges is possible. And in relation to highways, we are talking about the shortest distance to the road. But there are restrictions on the exit of timber transport on federal public roads, so they will carry on the ring road, and pay as if they were transporting in a straight line, ”he says. He is sure that now the logging industry is losing the incentive to include low quality plantations (with low productivity) in development projects.

Olga Mordyushenko