On Priority Investment Projects in the Field of Forests’ Exploitation

In accordance with Forest Code of the Russian federation the Government of the Russian Federation resolves to: 

1. Approve the attached Regulations on Preparing and Approving List of Priority Investment Projects in the Field of Forests’ Exploitation. 

2. Supplement Resolution of the Government of the Russian Federation dated May 22, 2007 # 310 “On rates of payment for volume unit of forest resources and rates of payment for area unit of forest plot which is in federal property” (Collection of laws of the Russian Federation, 2007, # 23, p.2787) with paragraph 11 of the following content: 

"11. To determine that by defining lease fee for a forest plot used for implementing an investment project, included into a list of priority investment projects in the field of forests’ exploitation, within the repay period of this project, for rates of payment for   volume unit of forest resources and rates of payment for area unit of forest plot which is in federal property should be used factor 0.5.".

3. Ministry of Industry and Energetics of the Russian Federation together with Ministry for Natural Resources of the Russian Federation and Ministry of Economic Development and Trade of the Russian Federation must develop within the three-month period and adopt in established order regulatory-legal acts needed for implementation of the given Resolution. 

Chairman of the Government
of the Russian Federation

M. Fradkov

Approved
by Resolution of the Government
of the Russian Federation
dated June 30, 2007, # 419

Regulations on Preparing and Approving List of Priority Investment Projects in the Field of Forests’ Exploitation 

1. These Regulations determine the order of preparing and approving list of priority investment projects in the field of forests’ exploitation (further – the List). 

2. Development of priority investment projects in the field of forests’ exploitation (further – Investment Projects) and their preparation for approval is carried out in accordance with federal laws, regulatory-legal acts of the Government of the Russian Federation and these regulations.

3. To investment projects belong investment projects on creating and/or modernizing units of forest infrastructure (forest roads, forest storehouses, etc.) and/or units of wood processing infrastructure (processing facilities for wood and other forest resources, bioenergetics facilities, etc) providing total amount of capital investments into each of them is not less than 300 million rubles. It is allowed to consolidate several investment projects implemented by one investor at the territory of federal district or region of the Russian federation into one joint project.

4. Carrying out the list including inserting to it investment projects and correcting the list is done by the Ministry of Industry and Energetics of the Russian Federation.

5. The ground for inserting an investment project into the list is the decision on approving application on project’s implementation submitted by commercial organization willing to implement investment project (further – Application) adopted:
а) with respect to projects implemented on forest plots belonging to the property of subjects of the Russian Federation of municipal formations - by organs of executive power of the subjects of the Russian Federation or organs of local self-government correspondingly;
б) with respect to projects implemented on forest plots belonging to the lands of Forest fund, where authorities on leasing as well as authorities on organizing and conducting auctions were transferred to the organs of state power of the subjects of the Russian Federation in accordance with paragraph 1, Article 83 of Forest Code of the Russian federation – by organs of executive power of the subjects of the Russian Federation;
в) with respect to projects implemented on the forest plots belonging to the lands of Forest fund, where authorities on leasing as well as authorities on organizing and conducting auctions were not transferred to the organs of state power of the subjects of the Russian Federation in accordance with paragraph 2, Article 83 of Forest Code of the Russian Federation – by Federal Forestry Agency;

6. Approval of application is done by organs of state power of organs of local self-government shown in item 5 of these Regulations (further – Interested Organs).

7. Applicant;
а) must confirm by documents availability of his own and/or attracted funds for implementation of investment project within the amount of declared investments;
b) must follow current obligations before the budgetary system of the Russian Federation;
c) must not be in the situation of reorganization, liquidation or bankruptcy or have some limitations regarding corresponding type of activities;
d) must not have past debt and losses in recent three years (if the company or institution was organized less than three years ago information is to be submitted for the corresponding period starting from the date of registration).

8. Application includes:
а) statement on implementing investment project with indication of name, legal status and location of commercial organization planning to implement investment project;
b) copies of charter documents and a document confirming the fact of including commercial organization planning to implement investment project into the Common state register of legal entities;
c) Concept of investment project containing the following information;
- goals and objectives of the project;
- brief description of investor’s activities on realization of investment project, including preliminary estimates as for financial-economic, budgetary and social results of implementing investment project;
- repay period of investment project;
- volume of expenses needed for preparation and implementation of investment project, including scheme of project’s financing;
- time needed for preparing project documentation regarding investment project;
- stage-by-stage plan of project’s implementation;
- basis for approximate boundaries, area and other qualitative and quantitative characteristics of forest area and needed information regarding forest resources.

9. Concept of investment project is developed in accordance of methodological recommendations approved by Ministry of Industry and Energetics of the Russian Federation agreed with Ministry for Natural Resources of the Russian federation and Ministry of Economic Development and Trade of the Russian Federation.

For investment projects, which implementation will be supported by Investment Fund of the Russian Federation in order prescribed by the Resolution of the Government of the Russian Federation from November 23, 2005, # 694 “On Investment Fund of the Russian Federation» as well as decision of including them into Federal for Special Purpose Program or Intergovernmental for Special Purpose Program in implementation of which participates the Russian Federation in accordance with the Resolution of the Government of the Russian Federation from June 26, 1995, # 594 “On Realization of Federal Law “On Supplies of of Products for Federal State Needs” – documentation is formed in order established by the abovementioned acts of the Government of the Russian Federation.

10. Selection of applications is carried out in order established by legislation of subjects of the Russian Federation, and in cases when federal organ of executive power acts as an interested organ – in order established by regulatory-legal act of this organ, with taking into account specific features foreseen by these Regulations.

11. Interested organ within 30 calendar days from receiving application adopts corresponding decision which must contain:
а) conclusion regarding accordance of an applicant and submitted by him concept of investment project with requirements determined by these Regulations;
b) data regarding possibility of designing and/or leasing without auction forest plot in boundaries shown in application based on forest plan of the subject of the Russian Federation developed in accordance with forest legislation;
c) data regarding amount and order of paying lease according the lease agreement in accordance with paragraph 11 of Resolution of the Government of the Russian Federation dated May 22, 2007 # 310 and paragraph  20 of these regulations;
d) data regarding inclusion into the draft lease agreement on forest plot the following reasons for  ahead of time termination of the agreement on initiative of lessor:
violation by leaseholder terms of project’s implementation for more than one year;
refusal of leaseholder to construct and/or modernize units of forest and/or wood processing infrastructure;
violation of terms for submitting, in accordance with paragraph 17 of these regulations, report on implementing investment project for more than six months.
e) obligations of investor as for constructing and/or modernizing units of forest and/or wood processing infrastructure.

12. Data shown in sub-paragraphs "b", "c" и "e" of paragraph 11 of these Regulations must be agreed with applicant.

13. Reason for refusal of application is its discrepancy with requirements of these Regulations as well as requirements of methodological recommendations foreseen by paragraph 9 of these regulations.

Refusal can be appealed against in the court.

14. For including investment project into the list, interested organ within 10 working days from approval of application in accordance with paragraph 11 of these Regulations sends this decision to the Ministry of Industry and Energetics of the Russian Federation.

Ministry of Industry and Energetics of the Russian Federation within 14 working days from receiving decision of interested organ adopts its decision about including investment project into the list and sends corresponding notification to the interested organ.

Information about investment project included into the list are submitted for including it into State forest register, conducting of which is done in accordance with resolution of the Government of the Russian Federation from May 24, 2007, # 318.

15. Inclusion of investment project into the list is the ground for concluding by interested organ a lease agreement of forest plot without auction on terms noted in decision adopted by interested organ in accordance with paragraph 11 of these Regulations.

Lease agreement of forest plot is concluded in accordance with forest legislation with taking into account these Regulations.

16. Reasons for refusal to include investment project into the list are discrepancy of application with requirements of these Regulations as well as violation of these Regulations by interested organ.

17. Investor is obliged to submit annually not later than by February 1, to the interested organ its report on implementing investment project.

Requirements as for content and order of preparing report on implementing investment project are determined by the Ministry of Industry and Energetics of the Russian Federation in agreement with the Ministry for Natural Resources of the Russian Federation.

Interested organ considers report on implementing investment project and submits to the Ministry of Industry and Energetics of the Russian Federation its report on results of project’s implementation.

18. Interested organ controls the process of implementing investment project. The subject foe control are obligations of investor as for creating and/of modernizing units of forest and/or wood processing infrastructure foreseen by lease agreement.

Interested organ submits control data regarding implementation of investment project to the Ministry of Industry and Energetics of the Russian Federation. Federation.

19. In case of emerging reasons for early termination of the lease agreement foreseen by sub-paragraph “e”, paragraph 11 of these Regulations, interested organ sends to investor an order on necessity of correcting violations before the definite date.

If such violations are not corrected before the determined date, interested organ has the right to send to the Ministry Of Industry and Energetics of the Russian federation representation on excluding investment project from the list as well as on terminating lease agreement.

Termination of lease agreement is also possible on the grounds determined by forest legislation.

Ministry of Industry and Energetics of the Russian federation within 14 working days from the date of receiving this representation adopts decision on excluding corresponding investment project from the list.

Investor has the right to dispute in the court the decision of interested organ on sending to the Ministry of Industry and Energetics this representation about excluding investment project from the list.

20. Repay period of investment project is determined in application, investment project and lease agreement on forest plot.

If investment project is excluded from the list, investor is obliged to pay lease fee in full for the whole period of exploiting forest plot.