A Reference Guide for Conservation and Development. Mckinleyville, CA

OVERVIEW and Newell,

Emma Wilson Development. 64 Island. Sakhalin Nogliki, flnear oil An operations oil onshore at are small, and costs oilare high. and infrastructure gas subsidizes the cost. The marketRussian is comparativelyalso pricesgas ( is questionable. nomic viability of supplying oil or togas the domestic market long-term contracts to extraction gas make viable. not begin soon,anytime as the companies need to secure the route. productionAnd gas from Ieither or II Sakhalin may depends I’s on Sakhalin commitment to develop pipelinethis ButAmur (Khabarovsk). ultimately the success of effort this and pipelinegas to fromKomsomolsk-on- running Sakhalin federal tofunding help renovate and extend theoil existing for export to Northeast secured also has Khabarovsk Asia. lin I project, to build a pipelinegas through its territory and beenhas lobbying ExxonMobil, operator of the Sakha- government would like also to increase its use of gas natural as a means to conversionmake possible. The Khabarovsk government seenhas development of its offshore reserves gas fiinvestment lacks to do so. eld—but For decades, Sakhalin’s from extracted the nearby Zapadno Ozernoe gas to gas— kotka wants to convert thepower Anadyr plant from coal rfe costs associatedtal with burning andcoal diesel fuel, some menting a number of effi ciency measures. reduce energy intensity by to imple- by one-half one-quarter increased. Chandleractually concluded that Russia could reduce their energy intensity in the ing wastefulness.” andfrom cars Warsaw to Vladivostok conformed to a strik-

For companies developing projects, the Sakhalin the eco- To reach energy self-suffi ciencyand reduce environmen- regions want to increase use of gas. natural  J. T S A E R A F N A I S S U R E H T u.s.$90 2004. rfe 119 – consumers are tounlikely pay world Some former Soviet states to managed $110 The per metric ton) unless government McKinleyville, Russian 1990 s, but in Russia it 120 121 Chu- Far 122 East: CA: Oil. fi nance andoil (seegas p. Japan forBank International Cooperation ( Overseas Private Investment Corporation ( forBank Reconstruction and Development ( tional fi institutions nancial activein the region—European in sectorthis beenhas low, because thepartly major interna- development of renewable energy. Unfortunately, investment other renewables, of parts the a unifi edgrid system, and good potential forwind, solar,and a larger plan to open up greater oil and reserves offshore.gas do environmentalists, who fear the pipeline is the first stage of ing industry associations and the public oppose the project, as projected to hold only supply. toa twelve- sixteen-year Fish- onlywill meet Kamchatka’s short-term needs, as the fi eldsare Petropavlovsk-Kamchatsky, and nearby cities. But the gas figas elds acrossthe southern peninsula tothe region’scapital, to toreceive a thanks pipelinegas, being built from onshore plans to andsurvey tap more offshore oil and reserves gas II in by Sakhalin reserves fi nally produced oilin speculation, and development, surveying, Sakhalin’s offshore regionthe diamond-mining near Mirny. decades ofAfter andpipeline the Sakha connects the Talakan oil fi eldwith the Tatar Strait to a refi in nery Komsomolsk-on-Amur, toareas pipeline industrial centers: The Sakhalin goes under percent of production). Oil is piped from both production (about A Given the remote location of many settlements, the lack of Southern may beKamchatka one of the few Onshore production is limited to northern Sakhalin Daniel Reference 90 percent of 2000 & rfe Daniel. ). Oil companies have ambitious production) ( and central Sakha 87 ). Guide rfe States. of Russia and from the United is imported from other parts consumed in the produce the less half oilthan Together,on Sakhalin. they molsk) and one refismall nery and (Khabarovsk Komso- refi neries KhabarovskKrai in two technologically outdated Oil refining is limited to known. the estimated reserves) is not contain of the offshore reserves (which is rough because the size exact ric tons, although fithis gure reserves to be Association estimates The Far and East Zabaikalye (seeKhabarovsk map Chukotka, and Kamchatka, Magadan, near Sakhalin, 1999 are ideal for the aggressive ( 466 1 . 7 123 60 million metric tons for to opic jbic ebrd 8 pages 75 . 9 percent of ), and the ) —primarily —primarily ) rfe billion met- Conservation rfe ), the U.S. regions ; the rest rfe 1 . 20 oil 10 ). 

OVERVIEW OVERVIEW  and Newell, Development. 7 0 4 1 5 1 6 1 J. 1

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OVERVIEW OVERVIEW and Newell,

NASA Development. 66 10 rfe other industries, but it remainedhas steady since rfe cent of Sakha’s total energy production. about rfe Coal. on securing foreign investment. with the developmentSakhalin, of Sakha’s fi elds dependent reserve gas development Large-scale likely will occur first off route as theoil Northern pipeline. Sakhalin-Komsomolsk figas Another elds Vilyui. near gas pipeline followsthe same mensurate with reserve size. A pipeline connects Yakutsk to 3 as high as and inthe maySakha Reserves remainder be near Sakhalin. firmed offshore Theareas. AssociationFar and East Zabaikalye con- signifiand cant other reserves, Sakhalin, mostly in Sakha, Siberia holds Russia’s figas largest elds, butthe reserves, gas Russia is the world’s exporter.largest Western gas. Natural that polluted wetlands and instreams northern Sakhalin. Sakhalin’s oil pipelines, resulting in numerous leaks small oil to leakage. percent ( ofparts Russia. Oil companies lose an estimated polluted, and extraction methods are as inwasteful, other Sakhalin. of coast northeastern the along seas and wetlands frozen the captures photograph this shuttle, space aNASA Taken from . 5 percent of production)Russian from mining in four million cu. m of yearly,gas but production is not com-

Oil-producing areas in Sakha and Sakhalin are heavily and inSakhalin Oil-producing areas Sakha with the exception ofOblast, accountsKamchatka for produced productioncoal declined more precipitously that ofthan Coal, the most important energy source throughout the  90 J. rfe T S A E R A F N A I S S U R E H T percent of Primorsky Krai’s and more than 10 24 gas reserves ofgas – 2004. With more of one-third the than world’s natural trillion cu. m. 20 124 28 million metric tons) of Russia’s crudeannual The . 2 million metric tons of incoal 1995 The Neftegorsk fractured earthquake 1 . 125 6 trillion cu. m, with Both regions produce about McKinleyville, Russian 126 In the early rfe 2001 3 1998 60 Far to also has has also percent 80 7 (about . The 1990 per- East: CA: s, reactor Evoronnear Lake Widespreadin Khabarovsk. public ous effort was in stationary plants in other plants in Pevek, Chukotka (see p. Energy (Minatom) would like to build fl oating nuclear power reactor in Bilibino, Chukotka. ofThe Ministry Atomic Nuclear. mining transforms andcast landscapes pollutes rivers. more destructive though mining.less Open- shaft costly than is bituminous coal. About Sakha. mated open-pit mines throughout the in Primorsky and aand Krais, Khabarovsk series of smaller the SolntsevskoeSakha, deposit several deposits in Sakhalin, deposits, the most important being the Elginskoe deposit in hopes tothe industry revitalize by mining large untapped ( ( regions: Sakha more likely, but require will this nucleartransporting fuel the Kuril Island chain. Use of facilities existing in Siberia is fuel in the tentative plans to build processing facilities for spent nuclear rejected the initiative (see p. mission, saying that some of the signatures had been falsifi ed, have a national referendum, but the Central Election Com- sian environmental groups collected mated a total of controversial law allowing such imports, which could bring to import spent nuclear fuel. In July operatingfacility began in October ging out the work to constructionraise costs, the numerous delays and complaints that contractors were drag- by the Zvezda Far Eastern Shipyard in Bolshoi Kamen. After ing fi ltration plant to storeliquid radioactive wastes generated Sea of Japan, provided about acutely aware that Russia was dumping nuclear waste in the radiation exposure. In all, power generation incidents, nuclear-powered submarines, including PacifiVladivostok-based c Fleet recorded occurred in the recordsafety is infamous worldwide. Nuclear accidents have Yakovlevsky Raion. in Primorsky possibly Krai, in Dalnerenchensky Raion or sincehas resurrected a impact and building costs led to the plan’s demise. Minatom opposition, concerns about seismicity, and environmental 3 . 3 A Coal isCoal largely withextracted opencast whichmining, is Russian environmentalistsRussian are resisting government plans Due to the million), and Amur ( Daniel 107 u.s.$21 19 Reference The billion metric tons of coal, with more in half than 20 people were and killed an estimated rfe , 000 rfe billion in revenue over a 55 , including one on Simushir, a islandsmall in 1986 rfe percent of 9 metric tons into Russia, generating an esti- ’s only nuclear power plant is an aging 1995 . & 7 million), Primorsky ( Chernobyl accident, Russia’s poor nuclear 128 130 as well. Between 129 In when Minatom proposed building a Daniel. 1980 1993 2 rfe . 7 rfe s plan to build a 20 million). 104 Guide , the Japanese government, u.s.$29 regions. The most recent seri- collisions, and coal iscoal thelignite; remainder rfe ). 133 304 The government has . The 2000 2000 2 million to build a fl oat- 466 1965 ) and triedhas to build . 127 5 10 million signatures to The government 9 9 . 60 rfe fi res, and for -year period.-year , Putin signed a 131 million), Sakhalin million), Sakhalin accidents on its 1 has an has esti- pages , 200 4 1994 1 groundings. 8 , Conservation 300 nuclear- Landysh MW plantMW , the suffered 132 Rus- 

OVERVIEW OVERVIEW  and Newell, Development. has contributedhas to the steady replacement of mature conifer whereting, trees inall a given plot are logged. (Clear-cutting including and destructivewasteful practices such as clear-cut- forests have had some respite from decades of overlogging, just a third of dramatic decline within harvest, heating for communities). (the boilers used in timber often mills provide centralized revenue,tax and basic such services as a stable energy supply after the closure of enterprises, wood-processing a trend that began revenue. hard-currency For many other towns and villages, Primorskylog Krais, exports contribute a large portion of the timber-rich southern social fabric of life in village some regions is greater.far In industrial production, its importance to the economic and accounted for between j. newell Timber morsky Krai. a turbinewind-power an indigenousin Agzu, in Pri- village Chukchi Seas. to installed advantage take of strong winds off the Bering and In Chukotka, a stations, stations,wind-power and solar energy devices. est in renewable energy including microhydroelectric power crises, some regional governments are showing growing inter- sources. solar, energy and Wind, other from the p. where the Mutnovsky Geothermal Power Plant was built (see Geothermal. ofpart a theHydroelectric Gilyuisky Power plant, which fl will ood is under construction (see p. skaya Hydroelectric Power Station, inalso the Amur region, tion patterns of roe deer and moose. The ecosystems, replaced andlandscapes, obstructedtaiga migra- that construction of plantthe Zeysky permanently altered often promoted as environmentally benign, scientists noted plantZeysky in Amur Oblast. hydroelectric While power is currently exploited. is commercially feasible and only ate Hydroelectric. accidents or alongtheft the route. and Vanino. Transport concernsraises about the potential for from countries Asian through J. 362 Offitimber cial production gures fi for the 1008 perestroika ). The plant, built in withpart a 2004. billion kW-hours of electricity, zapovednik ebrd —Although the timber industry traditionallyhas —Although Geothermal reserves lie primarily in Kamchatka, 136 The rivers of the 1985 , operatingbegan in December 135 These model projects, unfortunately, are rare. , beenhas causing adevastating, loss of jobs, 250 A Japanese philanthropist recently installed levels. wouldThis suggest that accessible The kW capacity stationwind-power was 134 when constructed (see pp. The hydroelectriclargest station is the 5 and McKinleyville, rfe Russian 221 , andespecially Khabarovsk 10 rfe percent of the rfe ), and there are plans to build 2 2000 ports, such as Vladivostok . can potentially can gener- 8 percent of which is With ongoing energy u.s.$99 production registering 68 2000 percent of which Far rfe 2001 . rfe MW Burein- MW 9 0 –210 209 million loan indicate a ’s total . East: CA: ). A Daniel diameter, commercially valuable trees are felled, is one result. logging, wherebyThe increase in high-grade only large- from the rather sawnwood, than plywood, etc.) as timber companies species logged and ofthe type wood product produced (logs fi res(see “Forest Fires of operationswasteful and providing fuel for potential future the already enormouslyare left at logging sites—increasing logs used to sawnwood,make plywood, and pulp and paper, demand, meanthas that woodchips, branches, and smaller hit. The collapse of processing, caused by decreased domestic and southern have Krai) Khabarovsk been hard particularly Biologically diverse forests in the southern region (Primorsky increase overlogging in forests accessible to these markets. former Soviet Union to China, Japan, and South Korea to costs have combined with a marketfrom shift states of the lent during than the Soviet era. Higher energy and transport about forestsdeciduous with second-growth forests at a rate of 2025 sian log imports to China in just four years ( soilfurther erosion. policyThis led shift to a tripling of Rus- to protect the few forests remaining natural and to prevent forced the central government to strictly limit timber harvests to the widespread deforestation of upper river watersheds— South Korea. Massive fl oodingin Chinain emergedhas as the loglargest supplier for China, Japan, and ever, is rising wood consumption in Northeast RussiaAsia. companies to struggle compete loggers.with illegal tions and collect stumpage and licensing fees. Honest timber difficult if notimpossible to enforcetimber regula- harvest tions, creating a “frontier mentality” in the indifference among timber companies toward logging regula- to enrich themselves. corruptionThis fosteredhas widespread unscrupulous shortfalls; vage logging policies and regulations to augment their budget regulatory bodies responsible for forest protection, abuse sal- Primorsky in Krai Russia ( late them. According to a study by World Fund– Wildlife was privatized, and the government beenhas unable to regu- erate illegally. Numerous fismall rms emergedasthe industry cause many logging companies, smaller ones,particularly op- (pine nuts) for species many animal in the Ussuri Taiga. species, significantly reducinganimportant food source restricted Korean pine logs ledhas to overharvest of that water levels. And the continued high demand for harvest- river basins (Group I forests) that are crucial for regulating ing construction, ledhas to another: logging along protected Chinese and Japanese demand for ash logs, prized for hous- Reference These Asian markets are radically changing the type ofthe These changing markets are type Asian radically In fact, these practices may have become even more preva- The greatest long-term threat to the region’s forests, how- Offi cial production gures are fi considerably cloudedbe- , China may face a defi cit of 0 . wwf 8 rfe percent a year [see p. and Eastern Siberia compete to meet demand. –Russia), –Russia), & Daniel. 1999 50 was illegal. In was illegal. addition, Guide leskhoz 1998 percent of total timberin harvest ,” p. 31 offialso sometimes cials seek 466 200 ].) ].) 81 w e i v r e v O ). for million cu. m of wood pages rfe Conservation 1998 1999 . It is now leskhoz —attributed —attributed – 2002  es, the ). By

OVERVIEW OVERVIEW and Newell, Development. 68 handbook. this Source: Note: tons) (000 Cardboard tons) (000 Paper tons) (000 Cellulose m) sq. (000,000 Fiberboard m) cu. (000 board Particle m) cu. (000 Plywood m) cu. (000 Lumber m) cu. (000,000 Timber Product 1985–1998 sector, forest RFE the of Output 1.7Table countries. onued processedtariffs wood products by consumer primary domestic demand, loss of government subsidies, and contin- reinvestment by fiRussian rms (capital ight), fl reduction of the collapse are many, including outdated machinery, lack of processed products in the the production of sawnwood, plywood, paper, and other of wood processing. The collapse development of a competitive processing industry. cutstial in Chinese and Japanese timber imports, and the tive governmentRussian regulation of the industry, substan- (see pp. cies responsible for forest protection are among the violators been because thelargely same unsuccessful government agen- branded the industry “uncivilized.” and better regulate the Presidentindustry; Putin himself and corruption. forthcoming, primarily due to logging, capital illegal fl ight, forests” for exploitation. But such investment nothas been in turn reduce pressure to continually open up “frontier products (woodchips, branches). The latter advantage would slowing of timberby harvest increasing the use of secondary sustainable revenues, more jobs in local communities, and a viding such products to these boominglarger, markets: more ment in wood processing, recognizing the advantages of pro- rfe per year, or

The future health of the The governmentRussian measures taken has to reform Regional governments have continually for called invest- (see p. Timber production includes total wood cutting, but not logging waste. waste. logging not but cutting, wood total includes production Timber Institute of Economic Research, 1999, and the regional chapters in chapters regional the and 1999, Research, Economic of Institute  J. 3–4 73 T S A E R A F N A I S S U R E H T 138 74 2004. The region’s timber industry now exports about 15 times the total reported yearlyin theharvest ). ). The rfe 6,179.0 rfe 228.3 192.0 418.3 117.1 has plummeted.has Causes for McKinleyville, 34.5 35.9 23.0 1985 Russian forests depends upon effec- Since the late 137 5,414.0 But soefforts havefar 539.9 240.6 189.4 215.4 1990 23.8 29.6 25.3 973.0 1980 60.0 22.1 13.1 10.5 14.1 1995 5.6 1.0 Far s, 476.0 1998 — 6.1 5.1 0.2 2.2 2.6 9.8 East: CA: earned only about determined the logging brigade, composed of eight people, logging site in Island,southern the organizations Sakhalin working conditions of loggers.Russian During a visit to a Watch and Pacifi c Environment, therevealed miserable tion in February export of raw materials provides few benefiAnts.investiga- quick profitsand subsistenceincomes for a select few,the the affected region’s economy in numerous ways. Aside from only about accounted for just pulp and paper operated.still mills By total timber production, and Khabarovsk and the Sakhalin and panel products) accounted for percent was exported abroad. was sent to other regions of the former Soviet Union, and timberall production was used regionally, while three countries: China, Japan, and South Korea. 70 ship to the industry’s primary markets— China, China, Japan, and ship to the industry’s markets— primary of course, other reasons for waste.this Costs to transport and are traditionally used in the processing industry. There are, whenharvested a site These is productssecondary clear-cut). woodchips, branches, and smaller diameter trees (which are logging sites in than Soviet times due to a lack of demand for on to new ofstands trees. would simply abandon an depletingarea after it and move othersubstances into harmful the water. Timber brigades destroying spawning grounds, and releasing resinous andtar tion of timber along rivers led to loss further as logs sank, of time often rotted or were infested by insects. Transporta- ed transportation capabilities. Logs left lying for long periods transportation stage, the amount of timber cut often exceed- best logs and othersleft all at the logging site. During the producing countries. process, a figure fourtimes higher inthan Westerntimber- 40 During period,this the timber industry wasted an estimated throughout the Soviet industrial period, from usethe of wasteful forest resources that plagued the region methods. Logging equipment.wood-processing reinvestingthan items in necessary for the industry, such as fi nal profi Russia’sof capital ts abroad—part fl ight—rather Unfortunately,exist. many entrepreneursRussian invest their work for such low wages because no other job opportunities was then sold to Japan for ( to a port received about cu. m logged. The truck driver thetransporting logs brigade member received an average of less than percent of production, all mostly in the form of logs, to to A The collapse of theindustry negatively wood-processing In Russian forestersRussian now report even higher levels of waste at Daniel 60 1989 Reference percent of cut all timber during the production , the industry was more of half Almost balanced. 485 , 000 1999 The collapse of processing exacerbatedhas & 5 75 cu. m (see table percent of total production, producing cents per cu. m logged. 141 by two Daniel. At the felling stage, loggers chose the 25 cents per cu. m. The wood itself $70 Guide 139 ngo to Processed timber (lumber s, Sakhalin Environments, Sakhalin $100 20 1 466 . percent of the region’s 7 ). 1998 ) per cu. m. Loggers for , processed timber 140 pages 1940 Thus, each Conservation 10 25 cents per percent to 40 1988 km km 30 . 

OVERVIEW OVERVIEW  and Newell, Development. timber production might have been expected to remain stable to export logs to Northeast markets. Asian to high energy costs and comparatively higher transport costs overall production in the importance of northern to regionsand Kamchatka) (Sakha 1999 accounting for haveand Krai Khabarovsk become growing timber centers, lyfrom shifting the north to the south. Both Primorsky Krai RFE. to the southern shifts Logging water andaffect can quality. the best trees, slowly degrades the forest’s genetic diversity logging method. The practice of onlyor high grading, taking selective remainshigh grading the area’s most cost-effi cient hote-Alin’s forests themmakes uneconomical soto clear-cut, forests clear-cut never recover. fully to support a wide range of plant species. and animal Many simplifialso es forest structure, reducingthe forest’s ability ceptible to wind and fi clear-cutting Large-scale re damage. create canopy inbreaks forests,forests making more sus- out dry also the Clear-cuts soil, hinder growth,seedling and clog river systems, and erode topsoil for necessary regrowth. and northern temperate regions. cause soil Clear-cuts erosion, remains the preferred practice over much of the techniques have failed to a gain foothold. Clear-cutting of many firms), sustainable forestmanagement and logging logging, weak regulation, in still managers control Soviet-era widely in use. ineffi cientandSoviet transport equipment harvesting is still it unfeasible to export smaller logs.South And Korea—make Customs. Federal Russian and Research, Economic of Institute Service, Forest Sources: RFE Region m) (cu. 1995–2000 production, timber RFE Reported 1.8 Table JAO Kamchatka Sakha Sakhalin Amur Primorsky Khabarovsk J. Given its location in the southern The diversity of species as well as the topography of Sik- Perhaps most important, for a ofvariety reasons (illegal (see table Data, compiled by Newell and the authors of the regional chapters in this book, are from Khabarovsk Forest Service, Sakhalin Forest Service, Amur Amur Service, Forest Sakhalin Service, Forest Khabarovsk from are book, this in chapters regional the of authors the and Newell by compiled Data, 2004. 1 72 . 8 percent of the ), up from 10,508,000 The 4,600,000 1,830,000 1,440,000 1,715,000 868,000 1995 55,000 McKinleyville, rfe — Russian 55 , meanwhile, declinedhas due percent in rfe Timber is gradual- harvest ’s total production in rfe 4,400,000 9,500,000 1,448,000 1,450,000 1,542,000 623,000 1996 37,000 , Amur Oblast’s 1992 Far — . The relative rfe ’s boreal East: CA: 10,930,300 4,662,400 1,070,000 2,761,000 1,531,000 136,300 742,700 1997 26,900 A Daniel during the in the Sukpai watershed these Logging in Krai. Khabarovsk company,Malaysian received a cessible steep slopes. In December roads and the technology to timberaccess on previously inac- in these forests because foreign firms have the capital to build increasetures may the dramatically volume of timber logged forests, in southernparticularly These ven- Krai. Khabarovsk in the which account for a growing percentage of timber produced ging inforeign these all forests. loggingVirtually operations, concern log- that geographicthis lead will shift to large-scale Russia’s most biodiverse forests (the Ussuri Taiga), raising logging pressures increase. will The two regions contain must be developed. economic strategies for communities in northern regions in more locatedstrategically southern regions. Alternative be markets will less able to compete with their counterparts timber-dependent communities indistant fromareas export major reason (see pp. paper plants, which were large timber consumers, is likely a percent in total production in tion fl uctuatedgreatly, from ranging –14 213 the comparatively lower ofquality most of the timber (see pp. through Primorskyand Darman Illarionov Krai. notealso exporting timber requires transport torail Eastern Siberia or point to the region’s it borders China, remoteness—although In Chapter ging of accessible timber duringstands the 1992 Reference For Primorsky byand Krai, Khabarovsk Krai contrast, geographicThis is shift significant economically because to rfe ). Sakhalin Oblast is a). puzzleSakhalin as well: timber produc- 10 9,854,600 2,200,000 5,618,000 848,000 149,200 561,800 percent in 461,100 , operate in the Ussuri Taiga and nearby coastal 1998 1999 16,500 1990 5 , Yuri and Darman Gennady Illarionov also & . The closure of most of the island’s pulp and s, but production dropped from Daniel. 1992 1999 0 04 – 402 Guide , to 10,615,400 . mayThis be due to heavy overlog- 2,672,000 1,306,000 5,016,000 586,200 869,400 135,800 16 1999 30,000 ). percent in 48 466 w e i v r e v O -year lease -year on 1997

(est.) for 12 , Rimbunan Hijau,, Rimbunan a percent of the pages 1995 12–15,000,000 1970 Conservation , and down to 6,393,000 3,309,000 s and 20 365 2000 — — — — — percent in , 454 1980  rfe ha

(est.) ’s s. 69 9

OVERVIEW OVERVIEW and Newell, Development. 70 fi eldworkand developing a sampling method allowto for levels. Defi logging”“illegal ning would requireextensive bate: once defi ned, wecan begin to determineharvest actual and, more importantly, to widespread logging. illegal offi cial gures owing fi to underreporting to avoidtaxation sector productionstudies, actual may be as high as the twice levels. harvest Accordingactual to numerous (see tables in 2000 1990 indicate a declinesharp in timberthroughout harvest the logging. Illegal table logging operation is now one of the inlargest the international ventures more conscientiously. Rimbunan’s historically the government, press, and foreign operations is easier on than venturesRussian because 175–75 roads provide will forest outsideaccess the leased area (see pp. Mountainsthe because northernnew logging Sikhote-Alin forests may lead to fragmentation of wilderness throughout 2000. for are rest 1997, for the are companies Amur for Data handbook. Source: (Primorsky) Amgu (Primorsky) LPX Kavelerovsky (Khabarovsk) Vega (Khabarovsk) Arkaim JV (Primorsky) LPX Roschinsky (Primorsky) Luchegorskles (Khabarovsk) LPX Gorinsky (Khabarovsk) LPX Shelekhovsky (Khabarovsk) De-Kastriles (Khabarovsk) LPX Everonsky (Khabarovsk) DV Hijau Rimbunan (Amur) Tyndales (Khabarovsk) Starma Forest (Amur) Amurlesprom (Primorsky) Terneiles (Region) Firm RFE the in Top fiproducers timber fteen 1.9 Table 1985

The actual Thedefi actual nition logging”of“illegal is open to de- s: Productions: was between , down from 1  Compiled by Josh Newell using data from regional chapters of this this of chapters regional from data using Newell Josh by Compiled . , but up from alow post-Soviet of 9 J. ). On a positive note, enforcing regulations on large T S A E R A F N A I S S U R E H T ). 1 . 2004. 7 and As notedAs earlier, offi statistics cial forthe 1 29 . 8 . ). These figures, however, do not reflect 6 million in The McKinleyville, Russian 12 1990 and Country Russia Russia Russia Japan Russia Russia Russia Russia Russia Russia Malaysia Russia U.S.A. Russia Russia and from 15 ngo million cu. m in 9 . 1 s have scrutinized million in rfe Annual production Annual timber 34 rfe Far 393,000 264,000 223,000 382,000 249,000 370,000 188,000 139,000 126,000 129,000 267,000 161,000 114,000 119,000 127,000 (cu. m) (cu. . 5 million (see 142 1996 rfe East: CA: 1999 only eager to dispelof claims unbridled logging, maintains illegal million in unreported revenue. alone were representslogged; this illegally about of timber ( wwf doubtedly includes. using inappropriate methods, harvest which Sheingauz un- violations, such to as failing clean up a site loggingafter or license or with forged papers. They exclude basic logging oforguise logging, sanitary salvage and logging without a for logging in a given commercialarea, logging under the permitted loggingarea, banned species or those not allowed ing more permitted than volumes, outside harvesting the a more narrow definition, limiting illegal logging toharvest- operation in the regulations were intotaken every loggingaccount, virtually economistestry SheingauzAlexander forestry if argues, all averaginglogging levelsillegal across the huge region. For- illegally, but their less mobile operations are easier to inspect. bribes resolve usually can problem.this fiLarger alsorms log about confi scation oftheir timber bythe government, but bythan operating legally. timber Criminal dealers do worry profi t more by paying nesfi for andillegally logging exporting ronmental regulations are so low that companies actually can too weak to be effective deterrents: fi nes for envi- breaking Penalties stipulated in bothand criminal civil legal codes are to avoid taxation, a common practice in Russia. post-Soviet beforepear authorities catch them. Sometimes isthis done ed. They often operate for only a few years and then disap- log and accordinglyillegally their production goes unreport- alone. Krai Khabarovsk of firms. By from logging firms using equipment and materials appropriated economic crisis. Some unemployed workers their started own back on production and lay off workers, contributing to an logging andcompanies wood-processing state-owned to cut percent. Privatization, however, forced many large, formerly most of the owned medium and large joint-stock companies produce lespromkhoz privatizationRadical led to the conversion of state-controlled points. and export exporters, companies, logging Multiple forms it and takes, why it is so detrimental. why flhas illegality ourishedin the era, post-Soviet what forest degradation in the locations, not overalllevels, harvest are the cause ofprimary egregious forms of activity. illegal methods Logging and variable), studythis instead documents some of the more levels harvest in illegal the A Rather than try to try Rather supplythan a monetary figure or toestimate Daniel . Greenpeace-Russia puts. Greenpeace-Russia the figure at 24 –Russia –Russia estimated that in lespromkhoz Reference , 000 50 es to joint-stock companies. Today, Russian- rfe 2000 cu. m were logged illegally in Primorsky for percent of total production) in Primorsky Krai ’s reported timber product—from rfe es, leading to a proliferation in the number , over & 144 would be illegal. Using defithis nition as a benchmark, Daniel. 450 147 rfe Most of these smaller operations rfe logging firms were registeredin Guide . The following sections explore (since available fiaregures so 145 1999 The government,Russian about 466 143 wwf for 1 600 . 5 million cu. m –Russia –Russia adopted pages , 000 Conservation u.s.$450 75 cu. m. to 85 146 

OVERVIEW OVERVIEW  and Newell, Development. corruption and export of illegally throughoutarticles the port.inexist Nahkhoda Newspaper thatbe can used for wood export hundred private piers and moorings tor Nikolai Pozdnyakov, almost one an estimateDirec- by Nakhodkales Primorsky alone. Krai export points ninety-seven inthan government estimates there are more authorities to regulate. The Primorsky impossiblevirtually for government points today are so numerous they are had both. By points, resulting in an explosion of the number of exporters and export tled the Soviet system strictly limiting customs clearance. forest documentservice required for merous blank transport certificates, a were being exported to Japan. A police search revealed nu- purchased from loggers with anddocuments, fake legalized in nearby Dalnerechensk. ash and Illegal oak stockpiles, meisky Raion, with a timber storage area and headquarters Chinesecrime organized group in the forest-rich Krasnoar- Crime ( Regional Outreach aCampaigns, Vladivostok-based according to Anatoly Lebedev, director of the Bureau for timber fiandrms exporters, many of which operateillegally, indicates Chinese money numerousfunds Russian small allow them to hide operations.cash Growing evidence also export fiarerms listed under namesfalse whichaliases, or vodsk, andUssuriisk, Dalnegorsk. SomeNakhodka, Chinese the Primorsky cities of Luchegorsk, Dalnerechensk, Lesoza- Many Chinese operators control wholesale timber yards in involvement of Chinese firms in the cial activity on soil,Russian but reflalso the ects increasing attributed to phobias about Chinese residence and commer- work in Russia of China. All goes this on, even though they have no rights to timber andquality value and accompany the timber back to business passport, expert assessmentarrange the S-series of wholesale and export to China. They come to Russia with ChineseRaions, seventy-one residents arein dealing timber tion, we found that in theand DalnerechenskyLesozavodsky FederalRussian Immigration wrote: Service “After inspec- letter Governor to Krai then-Primorsky Nazdratenko, the are aggressively moving into the offiand cials industry representatives, Chinesetimber brokers J. In the mid- In spring The strong reaction from offiRussian is cials partially According to government documents and testimony from 294 2004. dfoc exporters registered. 2001 1999 ) of the Primorsky regional police uncovered a , Khabarovskalone Krai . 1990 ” 148 , the Department for Fighting Organized The s, reforms disman- 151 1990 According to McKinleyville, Russian s reported 150 Export rfe , many illegally. In a rfe timber industry. Krasnoarmeisky Raion (Primorsky Krai). (Primorsky Raion Krasnoarmeisky in checkpoint ata truck fi offi Lebedev logging a militia Anatoly inspecting Russian lms cers Far East: ngo CA: . 149 A Daniel continue to sell timber to other wholesalers and exporters, points. Many exporters have ignored the decree, however, and ash log export and reduce the number of possible export In Primorsky, the governor signed a decree in ment to increase profits rather than to export. illegal regulate region’s timber. But maythis be an attempt by the govern- that a new state fiKhabGlavLes,rm, export The government,Khabarovsk for example, now mandates regional governments do attempt to control the situation. the origin of timber and assure its legality. Nonetheless, some ingly difficult forthe Forestand Service Customs totrack Blagoveshchensk). Jiang (near Khabarovsk) and Hei He (across the river from Timber fl areows increasing acrosstheRiverAmur to Tong River, where timber is delivered across the river into China. points upriverexist also from alongKhabarovsk the Amur wood from forest plots to ships offshore. Uncontrolled export advantage of leased forest plots near the shore to helicopter more remote ports. ash and harvested Korean pine through Primorsky’s smaller, certificates,and doublecontracts (one offi and cial one secret). involves forged logging and export licenses, transport fake species, and timber volumes. Similarly, transport regularly shipment declarations, which list inaccurate prices, grades, panies must provide documentation. They use fraudulent documents. “Purchasing” documents. track through Customs due to the widespread use of forged addition, timber harvested is illegally extremely difficult to such as Primorsklesprom or Chinese private companies. In Reference The rising number of export sites madehas it increas- & Daniel. 152 On Sakhalin, several companiesOn take Sakhalin, Guide To timber,market illegal com- 466 w e i v r e v O for pages Conservation 20 1997 percent of the to ban 

Josh Newell

OVERVIEW OVERVIEW and Newell, Development. 72 and oak logs. Japanese customs statistics for more prevalent in the export of more valuable hardwood ash cu. m of softwood pulp logs to Japan. practiceThis appears for the same period show that Russia alone exported from Russia, North statistics Russian America, and Australia. Japan reported timber. Incommercial-quality the first six months of Japanese importers, sorting after and sizing logs, sell it as because they are poorly trained in species identification. border either guards look the other way or to fail catch this paiding taxes to the government. hides company profi t onthe Russian side,thereby reduc- reduce the officontract cial exportprice. Thisillegal strategy Japanesetimber as pulpimporters logs label tohigh-quality and quality. species Mislabeling point controlled by Chinese exporters. transferred to a large timber holding nowarea, a wholesale logged illegally timber thepasses militia checkpoint and is isThis a common instrategy the city of Dalnerechensk: bribe the militia officer, and then the truckcan proceed.” with the militia is to send a scout ahead of the log to trucks through the militia point. One procedure typical for dealing people involved, two to fi ve hundred will getdollars you documents, the amount of ash timber, and the number of “Depending (Primorskyagrees: onKrai), the ofquality fake tee on Environmental Protection Raion in Krasnoarmeisky and export. Pavel Soldatov, former of chairman the Commit- The timber is then totaken a wholesale timber yard for sale through the militia point for two to three hundred dollars.” the firm Belogorka in Roshchino, “Anyconsignment can get documents. According to Kichigin, Alexander director of the timber is sold to a wholesaler who then forges customs militia are thenoccurs; also bribed at the checkpoint, and documents and timber to be exported.” port formanager is Everything alwayscash. negotiable, both negotiate the logs’extra price, and I simply give them to the difference that I hide for a private sale cash is up to me. We logging site. So I write in whatever I want to sell offithe cially; information about the timber that I ontake my truck from a morsky. “Our offigive cials mecertifi blank cates to fi ll in truck driver for an undisclosed logging company in Pri- are easily manipulated. ber. With such certificates, militiaand customs checkpoints license numbers, drivers’ names, and a logging license num- ging site data, tree species, allowable logging volume, truck u.s.$300 embossed ofseal the Forest couldService, be bought for that logging and transport certificates, complete with the Roshchino in Primorskyvillage fi Krai, eld research revealed black market in Primorsky In and Krais. Khabarovsk Such licenses and certificatesare widely available onthe

There are other loopholes: without Logging a license “We have a steady but mediocre salary,” reported Yuri, a  J. T S A E R A F N A I S S U R E H T . 153 These documents include dates for logging, log- 2004. 120 , 000 The cu. m of softwood pulp log imports McKinleyville, Russian exportersRussian and Russian rfe customs offiand cials 157 154 1997 show that Far 163 1997 , 000 East: 156 , CA: 155 include Korean pine areas—all of which facilitate the com- include Korean pine areas—all stands, and agreeing to expand the size of leased plots to granting permission to build roads through Korean pine Forest participatesService by issuing bogus logging licenses, permits pertained primarily to Korean pine forests. the company’s logging sites, however, revealed the company’s ing about from the port of Plastun to Japan in Company reported exporting timber may then be exported legally. Melnichny Timber to build roads, for example, or during logging.salvage This species may be logged, however, under circumstances, certain regulations forbid commercial logging of the species. The Plastun, ready for export to Japan, even though Russian Korean pine logs be can high-quality seen in the port of species. and protected of rare Logging as pulp logs. remaining logs made uptotal, high-quality Russian hardwood log imports totaled issued for hardwood logs exported at a volume of sults. From February ing export licenses without quantity limitations yields no re- much greater the than legal allowable cut volume.… Provid- region to Japan and China are constantly increasing and are wrote: “Timber hardwood export volumes from Primorsky to include strict quantity limitations on export licenses. He of asked thesky Krai, Ministry Russian Economy in Moscow former Director of Foreign Economic Relations for Primor- but with little success. On May repeatedly tried to restrict hardwood exports, especially ash, and ging of hardwoods increased four- to fi vefold between Primorsky’s logging industry department, estimated overlog- outside Primorsky and Khabarovsk. not considering hardwood exports to China from regions tics underestimated the volume of trade by at least 1998 m of hardwood timber was exported to China from Russia in contrast, federal customs data report only about was exported to China in Primorsky and Krai that logging but open to customslogging.salvage Local data show protected Group water levels and controlling erosion. These are riparian areas ash largest trees grow and where they are vital for regulating in southern andKhabarovsk Primorskywhere Krais, the hardwood.this Thus, intense logging riparian areas targets both Japan and China, where the housing industry covets mercial logging of the species. A According to Vsyacheslav formerBalandin, head of ash logs Demandis increasingfor in large, high-quality Daniel 1999 . Assuming the. reliabilityAssuming of local statistics, federal statis- 640 Reference , . The Primorsky and governmentsKhabarovsk have 000 25 213 , 158 000 cu. m of hardwood timber (ash and oak) from , 000 cu. m of “coniferous” raw logs. A review of 1 & forests and hence closed to commercial cu. m fiunlikely (an gure) were reported 150 15 Daniel. through May , 000 1998 cu. m from Krai Khabarovsk Guide 1 —a total of —a , 200 25 150 , 1999 cu. m of Korean pine , 1998 000 466 Large amounts Large of 20 363 , Vladimir Stegni,, Vladimir , cu. m, while the , as well as export- for 1999 , 000 790 pages , licenses were , cu. m. Of this 000 Conservation 520 930 35 159 cu. m. In , 000 percent, The , 900 1995 cu. 

OVERVIEW OVERVIEW  and Newell, Development. Primorsky containing Krai, Russia’s most ecologically diverse age and protect forests. The departments Russia, with over of Ministry Natural Resources. There are Service, tive use, management, and protection of administra- a particular departments, ( departments, each of which a managed respective region the forests. The Forest regional eighty-one managed Service mittee on Environmental Protection and managed controlled Prior to company? or logging agency oversight Service: The Forest selves under the ofguise orlogging.salvage sanitary use. governmentprimary agency responsible for forestregulating tacit agreement of the FederalRussian Forest theService, Many of these involve, ironically, the active cooperation or stop here. Myriad other complex schemes and frauds thrive. of illegality. forms Other 1999 legal quota in Primorsky region for these species for of] [all cu. m (both Primorsky while theand Krais), Khabarovsk krai, krai, oblast J. Years of declining federal left funding many forest service district. district. Although Putin’s decrees abolished the Forest Leskhoz is — logging. “salvage” so-called even by logging ban to law regional a introduce to … [need] We export. for cut timber healthy of amount large a to leads necessary, actually is tenance by conducted ging, log- salvage that is protection forest in worry main Our — logging.” “salvage of label the under cially commer- log to suppose, I right, no have we government, the from and administration fi local no the from nancing almost receive we as survive to means only our be may logging though Even regulations. and rules forestry of violators serious most the of some are districts, istrative ourselves, we that secret no is It 2004. Primorsky Krai Primorsky Raion, Olginsky Administration, of Head Krylov, Sergei Krai Primorsky Raion, Krasnoarmeisky Leskhoz, Melnichny of Director Kozachko, Viktor 260 2001 leskhoz , ) or republic. Under the jurisdiction of these 000 es regularly harvest export-quality timber them- export-quality es regularly harvest , the Federal Forest andService the State Com- and forest ( districts service es still es functionstill and are administered by the cu. m.” leskhoz 40 The in Khabarovsk Krai alone. in Krai Khabarovsk leskhoz Illegality in the Illegality industry does not es without suffi cientfunds toman- McKinleyville, Russian 1997 es in forests where no main- no where forests in es forest budgetservice in leskhoz leskhoz leskhoz es completely, completely, es es in RFE admin- RFE in es 1 , 740 es Far ) oversaw forest leskhoz East: CA: es in A Daniel dressed the abuse of logging.salvage Concerned about forest CommitteeKhabarovsk on Environmental Protection ad- cially valuable species, such as Korean pine and ash. forests loggingsalvage torules for raid high-grade commer- stumpage fees. protected territories, is exempt from lease payments and trees posing fi kindrethreats.This ofallowed logging, within nance” logging is intended to remove old and treesill and the Forest and Service fismall rms. budget, were generated from loggingsalvage conducted by The remaining est donatedService penalties and fi nes provided tation, generated by leasing payments and stumpage fees; regional government provided federal budget; additional sourcesfunding were varied. The among 2 forests, was example: the species violations by logging’; isthis absolutely prohibited.” The study then listed zones and along spawning rivers under the ofguise ‘salvage (ash, Korean pine, and spruce) in sensitive riparian protection logging rich, commercially valuable timber of key species tion trips,” the study’s authors wrote, “ river and keybanks, watershed “Based areas. on many inspec- and( trees; the value of logged timber; ( reduce fi rethreats, not to generate profits; ( violation of the Forest Service’s mission to log treesill and According to the report, of the rivers and creeksRaion, in Krai.”Khabarovsk Lazo report “Status of Group I forests in riparian protection zones leskhoz by the Khorsky, Oborsky, Mukhensky, and Sukpaisky division and local police reviewed health,of the particularly survival ash forests, the inspection , 500 Reference Before it was abolished, the inspection division of the By defiRussian nition, “salvage,” “sanitary,” or “mainte- rights for so-called “passage logging”;rights for so-called license Leskhoz), # On forest plot # or “renewal.” uponarea, This inspection, did not need “maintenance” percentber. Eighty-two of timberthis was were logged, including River. Using license,this zone of the highest category spawning region of the Khor “Renewal logging” in the for riparian protection so-called license Leskhoz), # On forest plot # staff salaries for salaries staff es during 31 leskhoz 4 67 ) logged in prohibited such areas, as steep slopes, & million rubles ( Leskhoz 42 1996 es. Only Daniel. . 5 192 85 million rubles, or 1 million rubles to fight thegypsy moth. (Gorny department of Sukpaisky – 123 38 17 (Sukpaisky department (Sukpaisky of Sukpaisky es and local companies exploit illegally 1999 Guide of February leskhoz dated July leskhoz forest stationsservice scattered 18 560 and published the fi in thendings million rubles came from the 3 2 698 ) removed under- and oversized . cu. mexport oftim- top-grade 5 u.s.$2 3 million rubles. The U.S. For- es operating in the Forarea. million rubles for refores- es routinely: ( 466 cu. m of high timberquality w e i v r e v O 380 27 . for 7 14 logging sites licensed , leskhoz 64 million), which paid 1996 , pages percent of the total 1996 516 2 Conservation delivered rights ) undergraded cu. m of es have been 1 , delivered a ) logged in - 1 quality ash. quality 

160 73

OVERVIEW OVERVIEW and Newell, Development. 74 predictstank, afi similar gure ( Forest Products ( million cu. m by estimates face Richardson defiChina an annual will cit of importer of timber in the near Japan.future, overtaking the future by effiincreasing harvesting ciency. Despitethese efforts, in timber production through massive plantation andefforts ernment developedhas programs to increase self-suffi ciency by China’s consumptionannual could reach predictedRichardson scenario,that under a middle-growth wood in the world theafter United States. by Logs comprisedstatistics). about seaports to these countries (see appendixes I and J for detailed kutsk, flBuryatia) owedthrough Siberianand Primorsky, and Amur) andSakhalin, Eastern Siberia (Ir- million cu. m of timber from the southern a major in shift just ten years (see fi g. sourceprimary of logs for China, Japan, and South Korea, tion in Northeast RussiaAsia. already has emerged as the term threat to the region’s forests: growing wood consump- the quated processing equipment, loggingand andillegal export, Asia. to Northeast exports Timber regulate the industry. prove they are unable, or unwilling, cannot be trusted to Service’s violations of loggingsalvage Russian regulations m to be cut under salvage Primorsky Krai’s Forestry aloneService allowed 10 vice had become Russia’s biggest timber producer, providing ForestKhabarovsk andService timber, and sales of timberthis generated revenue for the under loggingsalvage licenses were in fact commercial-grade shed. 115 The report documentedalso increased water levels of million cu. m of commercial timber. During that year, cm due to selective logging along the Khor River water-

2040 1995 China. According byto Greenpeace-Russia, logging of primarily old yellow birch trees. ash quality to the market, although licenses provided for These operations delivered more than “rejuvenationso-called logging” operations in fi sheriescategory oftheKaten River, there were a series of on sky Leskhoz the riparian protection zone of the first On the set of forest plots administered by the Katen- maintenance. site did not needof commercial ash—this quality timber were logged, high-quality including rfe 161  J. The report concluded , China was already the second consumerlargest of is poorly prepared to face what is the greatest long- T S A E R A F N A I S S U R E H T , almost Chinese consumption of timber is growing rapidly; is become China clear: will the world’s largest 2004. 10 cintrafor 2025 times the . The Center for International Trade in The logging loopholes. ), an infl think uential U.S.-based 1995 McKinleyville, 82 200 leskhoz Russian percent of the logs harvested With weak regulation, anti- 90 level. million cu. m) by percent of total.this 1 es. . 6 164 1998 ). In 2 The Chinese gov- 1 163 . , rfe 163 000 As earlyAs as 162 the Forest Ser- 2001 rfe billion cu. m The Forest (Khabarovsk, (Khabarovsk, 447 cu. m of first 377 Far 1996 land and , about cu. m , 000 2025 100 – 1986 1997 cu. to East: 225 15 CA: , . �� hot, on to Ulaanbaatar, and fi nally toBeijing. Illegally logged the Republic of to Buryatia, the Mongolian town of Erlian- travel by railroad from Naushki, just south in of Baikal Lake oftal China’s Heilongjiang Province (see map then on to Harbin, city and athe Russian-built current capi- southeastruns to inofManzhouli China Baikal and Lake Manchuria from the Eastern Siberian Chinese Russian-built and spruce from the southern logs from Eastern Siberia, and ash, larch, fi r,Korean pine, third). China imports Siberian pine ( either Eastern orSiberia the (about two-thirds) and double Japan’s average importannual level (see fi g. 2002 Chinese imports of logsRussian for the first nine months of million cu. m) in m) of China’s total log imports, a rise from just logsRussian accounted for almost already emerged as China’s source primary of logs. In supplycan such massive amounts of timber. Eastern Siberia and the Waggener and Charles pointBackman, out that outside of a log defi cit of Jaako Poyry predicts a defi cit of under scenario. a Thelow-growth Finnish consulting firm �� A Virtually all Russian logsRussian all exported toVirtually China come from Two in specialists Russia’s forest economy, Thomas Daniel �� was � � � � � � � � � � �� Reference �� 11 . 32 million cu. m—roughly double million cu. m—roughly 30 �� million cu. m, by & 1993 �� Daniel. . trendThis shows no signs of shifting. Eastern Railroad, which Eastern Railroad, cuts through rfe , few other regions in the world Guide rfe 110 . Some logs travel by the 44 million cu. m, including 2010 466 Pinus sibirica percent ( �� border of Zabaikalsk, . �� for 165 pages Russia has 1 5 . . 11 2000 rfe 21 9 Conservation percent (. million cu. ). Others ) and larch �� (one- �� figures 2000 1 . 6 ). , 39 

OVERVIEW OVERVIEW  and Newell, Development. m). These wood sources are replacing more ( up the remaining two-thirds Japan, with timber from the total annual timber accounts for ofroughly one-third 1999 to again the crises and the ruble devaluation, they rose million) as a result of thefi Asian nancial m). Although log exports fell in million cu. m) to Japan steadily increased from year), figure construction projects inbegun a given housing (the starts number of residential Chinese railroad trade. to about percent in some years), but it droppedhas to China was shipped by sea (almost significant percentage oftimber exported control of customs offi cials. Previously, a of these exportsmall points are beyond the 2 roadssmall and river crossings along the timber include across trucking numerous Oblast. Other methods for transporting est of which is Blagoveschensk in Amur of points on the Amur River, the larg- past fi ve(see years appendixJ). increased amounts of timber exports in the three anhot.routes All have transported Suifenhe, and about m was exported via both andManzhouli of the routes. In combated with more stringent regulation providing hope exportbe that can illegal timberall exported to China (see fi g. Erlianhot) account for about li, Gorodekova-Suifenhe, and Naushki- These three routes (Zabaikalsk-Manzhou- trade. the expanding Russian-Chinese suriisk, a city of located just noe) to the Chinese city of Suifenhe, Primorsky Krai’s Gorodekova (Pogranich- the timber via the third major route, from expert. route, according to one Chinese forestry for China on rail the Russian-Mongolian with timberRussian shipments bound pine from Northern Mongolia is mixed , 000 J. Japan. Timber is shippedalso across a number The southern , 2000 -km Russian-Chinese border; many Russian-Chinese -km 2004. 166 2 Despite a decade of decline in percent with increased Russian- , and 100 5 1 export ( to . 6 shows that log exports to km fromkm Russia’s Us- 250 2000 6 2001 rfe 1997 million cu. m range in The , 000 1 2 supplies the rest of . Eastern Siberian . million cu. m) to , about 5 ( million via Erli- 6 and a center for . McKinleyville, 1 million cu. Russian rfe 95 2 1991 4 million cu. percent of million cu. 1998 making making ( 4 ( . 40 3 1 4 . 167 6 . 7 ), Far �� 200 0 �� ibr(u m) (cu. Timber East: CA: ibr(u m) (cu. Timber �� km � � � � �

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OVERVIEW OVERVIEW and Newell, Development. 76 fromand Amur Oblast. Krai Khabarovsk from Vanino ( Siberia andfrom half the southern cu. m, respectively. ofHalf timberthis comes from Eastern 600 and Vostochny (in southern Primorsky) export annually from from throughout the southern to a lesser degree from Amur Oblast. The remainder comes the Irkutsk regionin Eastern Siberia, Baikal near Lake and timber exportedis Siberian through Nakhodka pine from the trade, exporting (see map Vanino, Sovetskaya Gavan, Vladivostok, and Vostochny in the southern per year. log imports remain will steady at about restrictions or a Japanese housing market collapse, Russian supplierlargest of logs. signifiBarring cant environmental withAmerica. As China, Russia emergedhas as Japan’s traditional log sources, such as Southeast Asia and North

Exporters ship wood to Japan from numerous locations , � � � � � 000  J. T S A E R A F N A I S S U R E H T to 1 . 22 2004. 700 � � � � ). Nakhodka alone). Nakhodka handles about of one-third 700 rfe , 000 , 000 , including large ports such as Nakhodka, � � � � � � � � � � 1 �� cu. m and from . 5 to to The 2 1 . , �� 5 000

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400 �� . Timber exported

5 �� to � � � � � � � � �� ,

�� 000 7 million cu. m to Far 500 �� , 000 �� East: CA: �� cession areas Korean loggers have thebadly forestsdamaged in these con- timberseeking revenues have since extended them. North Tynda logging agreements decades ago, and regional offi cials Korean federal governments first signedthe Chegdomynand and TyndaKrai) (Amur Oblast). The Soviet and North timbermanaged concessions in Chegdomyn (Khabarovsk Korean community in Sakhalin. ship between South Korean companies and the large local ports, perhaps reflSakhalin the ecting close business relation- Russia’s exports toannual South Korea was shipped from was logged About in Krai. Khabarovsk (see map Amur, and De-Kastri South Korea via Vanino, Sovetskaya Gavan, Nikolaevsk-on- example. turers often convert larch pulp logs into sawn timber, for logs, therefore,and pulp-grade Koreanis high; manufac- premium on price rather quality. than Demand for medium- their Japanese counterparts, Korean timber importers place a A North Korea imports In �� Daniel 2000 Reference , about . & each year. Newremains South Zealand cluding about about War II, and the Korean War, imports during the Japanese Occupation, World South Korea, whose forests were devastated cu. m per year. msk, export a total of including Korsakov, Poronaisk, and Khol- Olga ( Plastun ( 300 ( annually) and De-Kastri ( on-Amur the in largest are Khabarovsk Nikolaevsk- timber logged from nearby forests. Among regions, which almost exclusively export and Primorskythe Sakhalin, Khabarovsk, are a number of ports smallerin coastal In addition to these larger ports, there timber but costs about the same. Unlike Neworthan Zealand plantationChilean timber issian higherold-growth quality imports likely will increase, since Rus- ports of andPusan Inchon. South Korean from ports in the imports (see appendix I). Russia ships logs of logs,Russian thereby tripling its Korea imported about Newand Chile.Zealand In become a major third source,after ranking Korea’s loglargest supplier, but Russia has 830 South Korea and North Korea Korea and North Korea South Daniel. , , 000 000 90 100 rfe cu. m) and in Primorsky are cu. m of timber was exported to percent of its timber products, in- 400 Guide , timber from North Korean– 000 300 , 1 000 . 8 , 23 cu. m). Sakhalin ports, cu. m). Sakhalin to 000 ). Much of timberthis rfe to 466 9 to million cu. m of logs 10 500 to the South Korean 400 1 400 for to . 55 , 000 million cu. m , 250 15 pages 000 , 000 percent of 2001 cu. m) and , Conservation 000 to cu. m (DPRK) , South 500 to 1994 , 000 . 

OVERVIEW OVERVIEW  and Newell, Development.           success beenhas limited for a litany of reasons, including: revenues generated by legitimate logging operations. Still, prices, and the government loses stumpage fees and other tax flthe oods market with cheap timber, whichdrives down ahas vested interest in illegality.eliminating logging Illegal forests. in China, particularly poses the greatest threat to the region’s the long term, rising wood consumption in Northeast Asia, continues to dictate where and whatof type timber is cut. In forests and Korean pine. The toward shift markets Asian logging of protected forests and species, such as Group and export operations throughout the a fl regulatory functions—triggered urry of illegal logging disintegration and corruption of the Federal Forest Service’s opening of markets, theAsian collapse of processing, and the privatization of the timberRussian industry,events—the the steps. and next Conclusions country’s depleted forests. 163 to China. In be exporting some of its portion of the concession timber sion that year areas was greater.far North Korea may also theclaim volume of timber logged in North Korean conces- 26 of Rajin and Chajin. Statistics show that Russia exported shipped from Vladivostok and Poset to the commercial ports Tumen River railroad crossingTimber near is Khasan. also J. , Obstacles to reducing illegality. to reducing Obstacles One major export route to North Korea via runs the prices in the timber industry to the public. Failure to release information on trade and export contract sponsible for the forest sector, and consequent corruption. Lack of checks andfor balances government agencies re- Lack of incentives to promote processed wood exports. and trade controls. forestry sector to ensure responsible forest management Poor government policies for reinvesting revenues in the from logging to export. High costs associated thewith oftracking chain custody forcement of regulations by customs offi cials. Poor inspections of log export shipments and poor en- ment agencies. tor and consequent overruling by more powerful govern- Lack of power among agencies controlling the timber sec- regional administrations. the Forest of theService, Ministry Foreign Trade) and Poor collaboration between federal bodies (Customs, from timber companies. Dependence of inspecting agencies on fi andnes payments equipped, and poorly paid staff. departmentsunderstaffed with poorly trained, poorly Inadequate forfunding inspecting agencies, resulting in , 000 406 2004. cu. m to North Korea in cu. m in logs to China, a high figureconsidering the 1999 , North Korea exported an estimated The McKinleyville, 168 Russian Interconnected, simultaneous 1999 The governmentRussian , yet local observers rfe . includedhas This Far East: CA: 1 A Daniel biggest obstacle to industry reform. economic reality, in manifest government corruption, is the government offiin cials Moscow.fundamentalThis socio- police, forestry offiservice customs cials, offi even cials, break the law to amake includingliving, loggers, traders, high unemployment fuel disregard, this pushing people to prevailing disregard for laws and regulations. Poverty and A basic problem underlying many of these obstacles is the       ing Administration) needalso the right to arrest loggers of Natural Resources, the Forest andService, the Hunt- ing at customs export points. able delays from transport bottlenecks and inadequate staff- criticized the measure, however, citing the already consider- to research the consignment’s ofchain custody. Industry has period for timber export, allowing time for the government holdingadministration,Khabarovsk asuggests ten-day Georgi Markov, a deputy in the logging department of the or loggingpurchase, andillegal export could be curtailed. and if the documents required could be difficult to forge their effectiveness. the year-round inspections to ones,seasonal diminishing however, to managed pressure government offi cials to reduce ronmental Protection (Goskomekologia). Timber interests, duemainly tofrom vigilant staff the Committee on Envi- ableally to establish a relatively corruption-free roadblock, OffifromRaion cials Krasnoameisky(Primorsky) were actu- roadblocks are susceptible to bribes and forged documents. is transported. Unfortunately, the local police who therun because there are just a few major roads along which timber strategic points to check these certifithese can cates; succeed logged. to check the timber source and ensure that it was legally ofchain custody for timber, it making theoretically possible institutedKrai a system of transport certificates totrackthe timber to the same firmsthey confi scated it from.Primorsky timber, offiin cials bothcamps have beencaught the reselling personnel and police confi scate illegally logged orexported promised by internal corruption. Although forest service policies to combat logging, only illegal to fi ndthem com- Reference Federal and regional governments have developed concrete The regulatory main agencies (divisions with the Ministry Still, if roadblocks could maintained be successfully and grade of timber. Failure of importing countries to accurately check species increases in enforcement resources. Cutting and export bans passed without commensurate violations. Negligible fi andnes punishments for andlogging trade to illegally avoid taxation. system,Byzantine tax prompting companies to work Too many timber export points. the timber is cut. Incomplete export contracts thatto fail where specify 169 Primorsky regional agencies roadblocksmaintain at & Daniel. Guide 466 w e i v r e v O for pages Conservation 

OVERVIEW OVERVIEW and Newell,

Josh Newell Development. 78 joint venture between the fiRussian rm Terneilesand Sumi- jointRussian ventures process timber. have established themselves in the logs to Japan and China. Some processing ventures, however, timber but hasn’t done so and continues to export Sukpai southern agreed Khabarovsk, to process Hijau,Rimbunan which logs the Sukpai River watershed in simply to forestaccess resources. The loggingMalaysian firm example, some foreign companies promise to process timber ment of regulationthis provedhas impossible; virtually for krai ment issuedhas directives requiring at least industry that collapsed in the ments recognize the benefits of reviving anprocessing, do not have. reform the industry in the create number and themaintain necessary of forcestask to Tens of millions of dollars would be needed each year to activities cannot match the scale of the problem, however. timber forces,task inalso Primorsky The Krai. scale of these 1990 slowed poaching of Siberian tigers in the early and mid- essentially withrun Primorsky Committee on Environmental Protection but patrol forests. The Tiger Task Force, established within the agencies. so havefar to struggled work effectively with other regulatory logging these and illegal forces,task trade; targeting however, offihave cials thisright, establishedhas task special forces fiand carry The rearms. whoseofMinistry Internal Affairs, China. into points export timber major of three one is Gorodekova town railroad The

Rejuvenating processing. processing. Rejuvenating ngo ’s timberbe processedharvest locally, although enforce- s. government-This  J. s have formed brigades with regulatory agencies to T S A E R A F N A I S S U R E H T 2004. ngo The funding and funding aided by ngo rfe A number of regional govern- model is now being applied to McKinleyville, 1990 —a level of fi—a nancing Russian rfe s. The Khabarovsk govern- . Several Japanese- sts 20 Technowood, a percent of its cut 20 percent of the ngo Far staff, ngo East: s CA: tious decreefor calling raw logs exports to by cease the end of economic risks. investmentrequire and acceptance oflarge-scale political and Amur Oblast butexist, may not reach fruition because they processing ventures in Primorsky and and Krais Khabarovsk Autonomous Oblast. Plans to develop logging similar and m and produce agreed with the governmentRussian to log Forest Industry Bureau in China’s Heilongjiang Province, for example, the Hebei Forestry Bureau, a division of the timberagreements. harvest In March sian-Chinese tions regarding processing are prominent in recent Rus- sizeable processing industry is in place. more than andYang Xin Wood together have the capacity to process Wood,Lancian Mudanjiang Forest Wood, San Gan Ling, ang Province. The Chinese timber companies Nacha Wood, new timber-processing enterprises springing up in Heilongji- companies. Despite in China, there declining harvests are ment, some as joint ventures and others as Taiwan-owned have sawmills small been established with Taiwanese invest- greater economic and political stability. In Manchuria, many invest in Chinese processing due mills to cheaper labor and suppliers and Japanese investors, however, are more likely to pliers for the Japanese and South Korean markets. Chinese firms in the todustry oncapitalize growing demand for processed timber, wood exports to Japan have grown dramatically. Japan, Taiwan, and elsewhere. Since A Khabarovsk GovernorKhabarovsk Viktor Ishaev issuedhas an ambi- The governmentRussian is aware of stipula- threat: this If China is indeed modernizing and in- expanding this Daniel Reference 600 rfe , 50 000 would have to compete with Chinese sup- & , 000 cu. indicatesthis m annually; an already Daniel. cu. m of sawnwood in the Jewish Guide be exporting sawnwood use timberRussian and may nually. million cu. m of timber an- churia and process about operatesawmills in Man- new log sources. At least ducing region, to search for China’s timber-pro- main industry in Manchuria, logging forced the timber Chinese limits on domestic ize its processing industry. toefforts Russian modern- in China are likely to hinder export to Japan. 50 produces about oflargest the ventures and tomo Corporation, is the made from logsRussian to , 000 But recent developments 1996 466 170 cu. m of lumber for , Chinese sawn- for These already mills 200 pages , 000 Conservation 30 , 000 2002 cu. to , 300 4 

OVERVIEW