Logging and timber export practices

Krasnoyarski Krai is situated in Central Siberia, west of Irkutsk Oblast. Rich in forest resources, the total forested area of Krasnoyarski Krai, including Evenkiiski Autonomous Okrug, exceeds 100,8 million hectares. The total timber volume in these forests is estimated to be 11,3 billion cubic meters, of which 8,3 billion cubic meters is so-called mature and over-mature forest. Larch is the dominant species in 29 percent of forests in the region, pine - in 20 percent, spruce and fir are dominant species in 19 percent of forests, and Siberian cedar is the dominant species in 18 percent of the region's forests. Secondary forests consisting of birch and aspen dominate 14 percent of the forests in Krasnoyarski Krai.

According to statistics provided by the State Forest Committee, forest inspectors found 215 forest violations in 2007. The total cost of damages was estimated to around 8 billion rubles. Investigations into the violations were initiated in 71 cases. 3 suspects were found guilty and sentenced as a result of the investigations. Illegal logging activities have increased in the past six years. In many cases, forest inspectors could not confirm who was behind the illegal logging. Officials of the Krasnoyarsk State Forest Committee declared that in forestry enterprises of some districts more than half of the volume of illegally logged timber was harvested by unknown criminals.

It is extremely difficult to determine how much timber is exported from Krasnoyarski Krai to destinations abroad. Export tariffs for timber in Krasnoyarski Krai are many times higher than internal tariffs in Russia. For this reason, the majority of timber companies in the region have partners in Chita Oblast, Buryat Republic, Amur Oblast and/or other border gates that purchase timber from Krasnoyarski Krai and then export the timber to, in most cases, China. Future work in the region will focus on identifying companies that export timber from border towns, but do not have their own harvest licenses and to monitor their connections to logging companies based in Krasnoyarski Krai and Irkutsk Oblast.

Irkutsk Oblast is situated north-west of Lake Baikal, and is considered one of the most forest rich regions in Russia. In Soviet times, this region produced about 12 million cubic meters of timber annually. Irkutsk possesses half of all coniferous forests in Russia, or about 21 hectares per person. Although these riches legally belong to the state and ordinary citizens, the majority is controlled by a group of criminal entrepreneurs. According to data reported by the police force, 1.5 million cubic meters of timber is exported to Japan and China annually, although official statistics only account for approximately half that figure.

According to the Deputy Chief of the East-Siberian Customs Department, each rail wagon of logs contains more timber than reported, and at higher prices. It is absolutely impossible to control the 2,600 logging firms operating in Irkutsk Oblast now. Stimulated by the government's emphasis on a free market economic strategy, former pilots, teachers, policemen and athletes turn into occasional illegal loggers. Periodically, government officials pass angry decrees to stop this practice, but do nothing to implement and enforce them.

Financial loss to society as a result of the smuggling industry is estimated to be in the hundreds of millions of dollars a year, enriching members of a well-run smuggling industry. Chinese timber "managers" become familiar with and common on all the Great Siberian Railroads, from Krasnoyarsk to Ussuriisk. They buy raw timber, paying in US dollars and immediately sending trains loaded with timber to their homeland for further processing, making a handsome profit.

Protecting forests is difficult; the fines and penalties that apply to illegal logging are unreasonably small in light of the large amounts of hard currency available in the illegal timber trade. To charge an illegal logger under the Criminal Code, he has to be charged with stealing no less than 500 cubic meters of timber in one operation. The methodology of the loggers formerly prevented them from being charged under the Criminal Code. The shipments of illegal logs are always small, moved quickly and based on several truck loads of 10 cubic meters as a maximum. There are some opportunities to use other sections of the Criminal Code, like "illegal management", but a charge of this kind requires long preparation time, a high level of legal skills and a certain amount of money, which governmental and inspecting agencies always lack.

Fortunately, a recent amendment to the Criminal Code, adopted by the State Duma dramatically increased the punishment for illegal logging. Nonetheless, according to many inspectors, they need a system where special licenses are required and there is computer based monitoring of each logging permit until the final export consignment to ensure that the initial license and the final consignment are compatible in terms of amount of timber and quality.

A pre-export certification scheme modeled on the operation in Buryat Republic was put in place by the Chamber of Commerce in Irkutsk and Chita. This step halted many illegal operations, although it did not result in a slowing down of the rate at which logging volumes increase. Due to contradiction with federal legislation, the pre-export certification system, used in some regions of Siberia, was cancelled. Lawyers and governmental officials explained that the scheme created too difficult conditions for legal exporters and increased export prices for timber. Seemingly, the free trade ideology is of more importance for the Russian legislators than real results in the fight to combat forest theft.

Irkutsk Oblast police officials are considering recreating the system of area inspectors for forest protection, particularly in the northern parts of region. One such inspector will cost around $ 1,100 a year, which is not more than one truck load of timber. Additionally, he may bring back to the budget much more stolen timber. There is, however, always a risk that an inspector with such a modest salary may be bribed, as is common with foresters.

Seven districts already found funding for such forest inspectors, and are currently working on key timber routes. These inspectors are bringing some money to the local budgets by uncovering illegal logging, although it is problematic to regard confiscated timber as a resource to be sold to the market. By law, confiscated wood can only be sold after 6 months, when the quality of the wood has already deteriorated and the value is next to zero. Other territories tried to establish other models to regulate the timber market despite contradiction with federal legislation.

Finally the President of Buryatiya adopted a certification scheme. Certification was provided by the Chamber of Commerce with the following parameters to be checked: existence of an export treaty, and a copy of the logging license. These documents had to be stamped by a forest station (leskhoz) and reflect the source of timber. The document was then to be presented to customs officials. Additionally, each wagon had to be supplied with a specification of contained timber. Export prices were strictly checked to avoid dumping. Legal timber loading sites were appointed and a State timber-export Commission was established and, under the scheme, customs were obliged to compare their data to those of the Chamber of Commerce before delivering the final permit on the customs declaration.