Timber plantation operator Cathay Forest Products says its Russia joint venture timber project has been included in a list of Russian government priority investment projects.
It effectively means favourable treatment to Cathay’s subsidiary DalEuroLes for future timberland development projects, including more harvesting concessions and export tax exemption for downstream processed wood products.
Subject to further approvals by the federal government, the company could enjoy tax exemption on roundwood export.
DalEuroLes is also being included in a list of companies which qualify for a 50-100% refund of infrastructure construction costs at existing and future timber properties.
Cathay, which has 300,000ha of plantations in China and Russia, has employed forestry consultant Indufor to prepare a study on current and future development of the Russia timber industry.
