Transcript of the beginning of the meeting:

Viktor Zubkov: This is our first expanded meeting on the topic of forestry issues since the establishment of a new forest management agency in Russia.

Last year presented unprecedented challenges to the industry as devastating forest fires over the summer revealed how important and vulnerable Russian forests really are. These fires accelerated the industry's reforms. We realised that the effective management of the industry calls for new approaches and comprehensive and systemic solutions.

The Federal Forestry Agency reports directly to the Russian government and has the authority to initiate legislation. It also has newly delegated powers to develop government policies on forest monitoring and supervision.

Within a short time, the agency conducted an inventory of current legislation and adopted amendments to the Forestry Code and other legislative acts regarding forest fire protection, the strengthening of forest control and supervision, forest management, and reforestation and forest planning.

The management mechanisms in Russia's regions are also improving.

The Federal Forestry Agency has developed customised models for each regional forest management agency of the Russian Federation. In some regions, such agencies have already begun their work.

The adjusted status of the Federal Forestry Agency has lent a new dynamism to the Council on Forestry Development, which handles important issues involved in the industry. We have made good progress in deep timber processing.

Today, we will take a good look at how Russian regions are exercising their newly obtained powers in the area of forestry.

We will discuss the development and approval of related projects in Russia's regions, including issues arising from leaseholders, the protection of forests against fires, the maintenance of the state forest registry, and state forest inspection and oversight.

The government did its part in facilitating the Russian regions' efforts to properly exercise their new powers, especially in regard to fighting forest fires.

The amount of government financing provided to forest management agencies in 2011 was up 50% at 33.2 billion roubles as compared with 2010.

Nearly 10 billion rubles have already been made available to the Russian regions for the prevention and control of forest fires. The regions must use these funds effectively.

A total of 16.1 billion roubles was budgeted for the exercise of other powers, including the drafting and approval of forest management plans, the use of forests, and forest registry maintenance.

The resolution for the approval of the 2011 list of exclusive firefighting equipment suppliers is ready to be signed by the Russian prime minister. Once adopted, this resolution will allow Russian regional authorities to acquire all the firefighting equipment they need before the fire season begins.

Let me reiterate: the funds for these tasks have been sent and the suppliers have been identified.

I encourage the heads of the regions to start working without delay.

I'd also like to ask the regional administrations to act responsibly while drafting comprehensive targeted forestry development programmes and their funding. About 60 such programmes have already been developed.

Relations with the leaseholders are another important issue. The regional administrations should seek to reduce the level of tax arrears as a result of the failure of leaseholders to pay for their leased forest plots. I'm sure that everyone is aware that the payments received from the leaseholders will go to the federal budget and budgets of the constituent entities of the Russian Federation

Prevention of illegal logging remains a very important matter. The constituent entities of the Russian Federation are directly responsible for handling this properly.

The Russian government instructed the Federal Forestry Agency to lead an interdepartmental working group charged with building a system to enforce the legality of lumber harvesting, purchasing, transportation, and export.

In summation of 2010, I would like to commend the way the Republic of Udmurtia, the Republic of Tatarstan, the Altai Territory, and the Kostroma Region exercised the powers given to them.

Let me say a few words about the outlook for the industry and the challenges it faces. We need to finalise forest legislation, maximise our forest growing and forest restoration efforts, and improve our protection against parasitic insects. We need to prepare the industry for dealing with natural disasters by establishing a system for forest fire prevention and fighting, and we need to put in place an effective and legal system for lumber harvesting, purchasing, transportation, and export, as well as ensuring the stable development of lumber transport, infrastructure development, the improvement of forest use profitability, and the establishment of modern forestry employee training programmes through the development of forest science.

All of the above will be reflected in the state programme "Development of Forestry in the Russian Federation in 2012-2020," which is currently being developed.

Forests are our nation's wealth. They are [our] only renewable strategic resource. We need to be smart and efficient when using them. We will need to change the way the Russian people look at the forest. To do so, we need to do regular work in the Russian regions, including conducting forest planting days, campaigns like "Clean Forest" and "Protect Our Forests from Fire," and contests among industry employees along with children and young adults. All this is especially true now, when the UN General Assembly has for the first time declared 2011 "The International Year of Forests." Russia supported the initiative and effectively participates in this event.

I hope that our meeting will be used as an opportunity to generate a concrete and meaningful conversation. We will discuss current issues facing the industry, problems facing the Russian forests, and the goals of the federal and regional authorities."