Forestry, logging and clearing — the bill has been prepared for the second reading

Forestry, logging and clearing — the bill has been prepared for the second reading

    Last week, a large bill with amendments to the Forest Code of the Russian Federation was published on the website of the State Duma for legislative support. The document has been prepared for the second reading and contains a number of significant changes that will affect both the forest management procedure and the rights and obligations of tenants of forest plots.

Key changes in the draft law

    The text is voluminous, but the most noticeable changes are:

•     - separation of forest management documentation and project documentation;
•     - widespread division of logging into logging and clearing;
•     - a new name for the estimated logging area — the allowable annual volume of timber withdrawal;
•     - the disappearance of references to the state forest inventory;
•     - the most important thing for forest users is the forest management conditions for the use of forest plots under lease and termination of the lease agreement for timber harvesting.
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New duties of tenants on forest taxation

    It is planned to introduce a norm into the Forest Code, according to which forest taxation and planning of types and volumes of forest conservation measures are provided by citizens and legal entities to whom forest plots are provided for timber harvesting.:

1.     - before the expiration of the validity period of the forest management documentation compiled based on the results of forest taxation in relation to the forest site;
2.     - and also within two years from the date of conclusion of the lease agreement for the forest plot in the case of the provision of a forest plot in respect of which the validity period of the forest management documentation drawn up based on the results of forest taxation in respect of the relevant forest plot has expired.
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Key changes for tenants:

Termination of the lease agreement for non-fulfillment of obligations

    A rule is consistently proposed according to which, if a legal entity or an individual entrepreneur has a lease agreement for a forest plot leased for the purpose of harvesting wood (with the exception of harvesting wood when using forests in accordance with Articles 43-46 of this Code), the contract may also be terminated prematurely if the lessee fails to fulfill obligations on forest taxation and planning types and volumes of forest conservation measures:

1.     - upon expiration of the validity period of the forest management documentation, if it was relevant, or
2.     - after two years, if the site is transferred without up-to-date forest management documentation.

Importance for forest users

    For tenants of forest plots, the bill carries both new obligations and risks.:

1. - Taxation becomes the responsibility of the tenant. Previously, the responsibility for forest management lay with the State. Now the tenant is obliged to ensure the taxation and planning of forest conservation measures on time.
2. - The risk of termination of the contract. Failure to fulfill the obligations on taxation and planning may become the basis for early termination of the lease agreement. This is a serious risk for companies that do not have time to carry out taxation on time.
3. - Clear deadlines. The draft law sets a specific time frame: before the expiration of the forest management documentation or within two years from the date of conclusion of the contract, if there is no documentation.
4. - Separation of logging and clearing areas. The new division of logging types clarifies the legal status of various types of forest management, which should reduce the number of disputes and abuses.

What's next?

    The bill has been prepared for the second reading in the State Duma. It is expected to be reviewed in the near future. It is recommended that timber companies and tenants of forest plots carefully study the proposed changes and assess their ability to meet the new requirements, especially regarding forest taxation.

Tags: #Russia #forest law #Forest code #forest management #logging #clearing #lease_forest_parks #bill