Illegal Logging, Rising Consumption Threaten Russian- Tokyo - Pristine forests in eastern Russia are being illegally logged at an alarming rate, and the timber is being exported to satisfy rising demand in China, Japan, and South Korea, according to a report released today. The report documents the global importance of these forests as habitat for endangered species such as the Siberian Tiger, as a carbon sink to help mitigate global warming, and as the web of life for many indigenous and forest communities.
The report found that "lack of regulation is apparent on all levels" and documents in detail a lawless timber trading regime where weak federal legislation and infighting among federal and regional government agencies have led to widespread unregulated logging. The report also documents instances where Russian firms conceal profit through clever, complex methods of frauds and bribes.
The 50-page report, a culmination of years of research, is a co- publication of three environmental organizations (NGOs): California-based Pacific Environment and Resources Center (PERC), The Tokyo branch of Friends of the Earth, and the Bureau for Public Oriental Campaigns in Vladivostok, Russia. It is available in Russian and English.
Illegal logging practices prevalent in Siberia and the Russian Far East include: *Logging without a license *Logging in protected forest zones, including along river systems *Logging protected tree species *Logging outside of concession boundaries
"There really is an irony here," said David Gordon, Director of Programs at PERC and co-author of the report. "President Putin is on a crusade against corruption, yet nothing is being done about the illegal timber trade that is rampant throughout Russia's vast forests."
"Logging companies are forging documents and bribing officials to send our forests out of the country and pocket the quick cash," said Anatoly Lebedev, a report co-author and the director of Vladivostok's Bureau for Public Oriental Campaigns. "Russia's economy will never improve until we stop corruption in our natural resources sector."
Much of the illegally logged timber is making its way into the marketplace as Japanese and Chinese timber importers turn a blind eye to the problem. Globally, illegal logging is recognized as a growing problem. This is evidenced by a resolution at the 1998 G-8 meeting to create the Forest Action Programme, which commits all G-8 countries to tackle illegal logging.
"Two years have passed since the adoption of the Action Program," claims Josh Newell, a report co-author and coordinator of Siberia programs at Friends of the Earth-Japan, "and no concrete steps have been made to address the critical global issue of illegal logging. How can we develop timber certification programs and sustainable forest management when illegal logging is rampant in Russia, which has 20 percent of the world's forests? The G-8 countries and international trade agencies like the World Bank need to get it in gear and fulfill their pledge to stop illegal logging and trade."
Almost all of the timber is destined for markets in China, Japan, and South Korea. Demand is especially booming in China, due to domestic logging restrictions. According to the Center for International Trade in Forest Products, a think tank at the University of Washington, by 2025 China could face a deficit of 200 million cubic meters of wood per year. China, which already gets about 42% of its log imports from Russia, is looking across the porous China/Russia border to satisfy this timber deficit.
While the cutting continues to increase, Russia's forest communities are economically languishing. Logging villages throughout the region continue to live in poverty, and local people are worried about their very survival.
The report concludes by suggesting a number of concrete actions that can be implemented now both by the Russian government and the international community to crack down on bribery and corruption, and to curb the growing consumption of timber in Northeast Asia.
For more information, contact: Rory Cox Communications Director Pacific Environment and Resources Center 510/251-8800 rcox@igc.org Web site: http://www.pacificenvironment.org
ITEM #2
Title: World Bank Russia Loan Halt Sought
Source: Copyright 2000. The Associated Press.
Date: July 11, 2000
By: Harry Dunphy, Associated Press Writer
WASHINGTON - Russian and international environment organizations urged the World Bank Tuesday to halt all loans to Russia until President Vladimir Putin re-establishes the State Committee for Environmental Protection and the Federal Forest Service.
In a letter to bank President James Wolfensohn, the groups also questioned continuing a $60 million bank loan to the forest service that was made five days after the agency was dissolved.
Putin dissolved the environment committee and forest service May 17. The committee was responsible for monitoring all aspects of the environment except for nuclear safety.
In an apparent cost-cutting move, environmental protection was placed under the Ministry of Natural Resources, which helps enterprises make the most of Russia's mining, oil and timber resources.
``As president of the world's largest public development financial institution, the capricious abolishment of these vital agencies must be of concern to you,'' the letter said.
It was signed by 67 mainly Russian organizations but also included international groups such as Friends of the Earth and the Sierra Club of San Francisco.
Among those signing were Alexei Yablokov, an environmental adviser to former President Boris Yeltsin and Aleksandr Nikitin, a former Navy officer who was imprisoned and later released after speaking out about the Russian fleet's handling of nuclear waste.
``We urge you to issue an immediate moratorium on all new World Bank approvals for projects in Russia and suspend disbursements for all current Russian projects that impact the environment until the ramifications of these agencies' abolishment is fully known and until these agencies are fully restored,'' the letter said.
It said representatives of the organizations that signed wanted to meet Wolfensohn soon to discuss these issues.
Environment problems in Russia include oil spills, contaminated drinking water, over-logging and huge, poorly stashed repositories of nuclear and chemical waste, much left over from the Cold War military buildup.
Bank spokesmen had no immediate comment on the letter which was dated Tuesday.
Last week the bank's board of directors canceled a $40 million loan to China, in part because of concerns over the effect it would have on the environment.
ITEM #3
Title: World Bank Stands By Russian Forest Loan as Activists Oppose It
Source: Copyright 2000, Bloomberg News.
Date: July 19, 2000
Washington -- The World Bank defended its approval of a $60 million forest management loan to Russia, although it said the money will be withheld until ``environmental safeguard policies'' are met.
World Bank vice president Johannes Linn described the global lender's position in a letter to the Russian and U.S. environmentalists who a week ago called on the World Bank to freeze the loan. The bank's executive board approved the transaction after the world's most heavily forested nation eliminated its forest protection agency.
``I am confident that it was the right decision,'' Linn wrote. Still, the bank is awaiting clarification from the Russian government regarding ``loan implementation arrangements that are consistent with out environmental safeguards'' before providing the money.
The loan was approved in May by the bank's executive board less than a week after Russia abolished its national forest service and its state committee on ecology. It is the first loan for Russia from an international lender since Vladimir Putin was elected president in March.
The 68 environmentalists, most of whom are Russian, asked World Bank President James Wolfensohn and members of the World Bank's board to halt the forestry loan and refrain from lending the country any money for environmental projects until the government restores its ecology protection agency or establishes a new one.
The Russian government appears to be leaving environmental oversight to the natural resources ministry, an agency that licenses mining and oil drilling, according to the environmentalists who sent the letter. Without an agency to protect forest ecology ``we do not believe World Bank Group projects that impact the environment in Russia can proceed in an environmentally, financially or legally sound way,'' the environmentalists wrote.
`Improve Management'
In his response, Linn downplayed that concern. Reorganizing environmental protection activities in Russia, which he said have been inadequately handled in the past, ``can be seen as an opportunity to improve natural resource management in Russia.''
At the same time, Linn wrote that Michael Carter, the bank's country director for Russia, ``will be happy to meet'' with the environmentalists who criticized the loan. ``We will also be interested in your views more generally on how to address the enormous ecological challenges your country faces.''
Linn's letter doesn't solve the problem, said Doug Norlen, an environmentalist opposed to the loan.
``The response shows a fundamental lack of understanding of the Russian government's changes and the fact that the agency that will take control has a historical and irreconcilable conflict with environmental protection,'' he said.
Norlen, policy director the Pacific Environment and Resources Center in Washington, an environmental group that monitors forestry, oil and gas production and mining in Asia, said Linn's letter indicated the bank is concerned about the project.
``I have never seen the World Bank give a loan to an abolished agency,'' he said. ``I think they realize they have serious problems.''
Both the IMF and World Bank have said that Putin is in the best position of any leader since the collapse of the Soviet Union to push free-market reforms. The forestry loan was the first tangible sign that the lenders will back their verbal support with new money.
Berries and Mushrooms
Russia has more acres of forests than any other country, amounting to more than one-fifth of the world's forest cover. The project will concentrate on three forests: one near St. Petersburg, another in central Siberia and a third in the country's east.
With the money from the loan, Russia is supposed to improve its forest regulations, including clarifying whether companies can lease forest lands; improve its fire and pest protection; and increase training for companies in how best to use the forest.
Training will focus on how to tap forest products, including the processing of berries, mushrooms, honey, cedar nuts and pine resin, according to bank documents.
Since Russia joined the bank in 1992, following the collapse of the Soviet Union, loan commitments to the country have reached about $11 billion for 45 projects.
In 1998, the bank agreed to lend Russia $1.5 billion to improve tax collection and improve the efficiency of state-owned monopolies in power, railways and other businesses. The project was part of a larger $22 billion bailout of the country by international lenders, and was the largest single loan ever made to Russia.
Lending under that program has been stalled since last year, largely because the IMF suspended new loans for Russia. The World Bank follows the IMF lead in lending to support government finances.