Transcript of the beginning of the meeting:
Vladimir Putin: Mr Savinov, let's discuss forest reclamation, before talking about the exploitation of forests. How do you organise such work? In previous years, wood-felling was not always well-organised, to put it mildly. As we know, this is still happening in some regions, primarily border regions and regions with a more developed infrastructure facilitating easier timber exports. What have you recently accomplished in the sphere of forest preservation and recreation?
Alexei Savinov: Mr Prime Minister, we are working on this problem. Until now, we have not implemented very effective forest-regeneration programmes. We prioritise forest exploitation. However, ineffective forest-recreation programmes can be explained by the use of substandard seed, which do not equal specific forest-reclamation parameters like those stipulated in Finland, Sweden and Canada. We paid little attention to this problem. This year, we have decided to monitor the contractual obligations of companies involved in the germination process, to improve seed quality in growing pine-trees, fir-trees and birch-trees with enhanced properties.
Here is another aspect of our forest-recreation programmes. In the past, forests were felled completely over a large area, and seeds and saplings subsequently planted. However, forests must be cared for just like any other crop. Saplings must also be looked after, so that grass, weeds and bushes do not blot out the Sun. This labour intensive process must continue until full tree-tops appear. Consequently, we want to adopt a tougher regimen on this issue and care for the trees until they mature sufficiently.
Vladimir Putin: What are your short-term forest-exploitation objectives?
Alexei Savinov: Mr Prime Minister, we prioritise lease contracts in forest-exploitation. We must see to it that lease-holders acquire property rights. You mentioned that forests are exploited more near roads. Unfortunately, those regions have virtually turned into plains. This year, we will allocate road-construction funding in order to prevent such plains. This will make it possible to harvest pristine forests located far away from highways, towns and villages. In this connection, we have amended Article 83 of the Forest Code. We now have the right to issue forest-road construction subventions to companies in forestry. This makes it possible to obtain additional resources totaling some 200 million cubic metres during construction of these planned roads. It is our intention to replace spontaneous lumbering operations with controlled forest-exploitation projects, so that lease-holders will use the entire area. This will provide us with additional resources.
Vladimir Putin: What obligations do lease-holders assume in the area of forest-reclamation?
Alexei Savinov: Lease-holders must implement all forestry activities linked with fire-prevention measures and large-scale forest-reclamation programmes. Mr Prime Minister, in my opinion lease-holders should be relieved of forest recreation commitments. This task requires the efforts of the State. Lease-holders must implement more cost-effective forest-exploitation projects, while the State must improve the quality of forest-reclamation programmes, because the status of lease-holders remains unclear in this respect. This is the first thing. The second, forest-reclamation efforts is a great financial burden.
Vladimir Putin: We must assess the required tax revenue from this type of activity, so the state can implement forest-reclamation programmes.
Alexei Savinov: I want to tell you that our lease-holders pay the lowest assessments in using forest resources.
Vladimir Putin: This is exactly what I'm talking about. The prices are low, but the relevant budget proceeds must enable the budget to exercise this function. Otherwise lease-holders exploiting such cheap resources would have to assume this function. In that case, we must strictly monitor their compliance with specific obligations.
Alexei Savinov: We are intensifying our work in this respect and are monitoring the compliance of timber harvesting companies with their contractual obligations. We are stepping up financial control and are more closely watching developments inside forests.
Vladimir Putin: Let's discuss this issue in greater detail because Russia has more forests than any other country. However, there will be no forests left around major cities, if the trends of the past few years persist. This is happening in Karelia and other places. Forests would only remain in the taiga where no one goes.
Alexei Savinov: I want to say the regulation process is not completely correct. Regions are engaged in forest harvesting while also exercising control-and-supervision functions. We believe that the functions should be delimitated - constituent entities must focus on forest exploitation, while our Agency must exercise state federal control.
Vladimir Putin: Mr Savinov, let's discuss this aspect in greater detail.