The Natural Resources Ministry is willing to offer a large number of benefits for investors in the Russian timber industry. The companies, meanwhile, are pressing for privileges in selling timber for firms with processing facilities under construction. The Economic Development Ministry reminds that subsidies for any companies are harmful for the national economy.

The government is to discuss on Thursday the state policy in the timber industry, which is to be part of the revised Forestry Code. Minister Yury Trutnev is presenting a report. The documents map out criteria for selecting priority investment projects in the industry.
The Energy and Industry Ministry suggests that investment projects worth more than 5 billion rubles would get forest sections without auctions and pay 50 percent of the rent or even no rent at all. The Economic Development and Trade Ministry has been highly critical of the plan.
The Natural Resources Ministry is to have the final say in the dispute. A Kommersant source in the government explained that heavy subsidizing is necessary because timber supply exceeds needs of timber producers by one-third. The source expressed an opinion that forest sections should be allocated without auctions and with very low rents and even no rents in some areas.
Meanwhile, timber producers are pressing for privileges in selling timber while processing combines are under construction.
A possible decision to support timber companies will create a precedent when certain businessmen will be subsidized, a point that the Economic Development Ministry strongly disagrees with.