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Wood Industry

Леспром

Investment group MIROLUB is an initiator of the land reform. The group acted as one of the creators of the “Investment Hectare” programme, which should become a successor of the Federal Program “Far Eastern Hectare”.

Since November 2017 the Agency for Human Capital Development in the Far East under the Ministry of National Economy of Russia has been studying the “Investment hectare” project in the pilot mode using the Group’s best practice.

The development of the program took into account the rich experience of previous similar initiatives aimed at development of remote or sparsely populated areas.

First of all, Stolypin’s agrarian reform served as an example. The MIROLUB and the Union of Land Surveyors of Russia and the Russian resettlement movement set up a new structure – “Dal’zeminvest” (Far Eastern Land and Investment Corporation) – based on Stolypin’s model of the resettlement bureau.

It is assumed that any Russian citizen who applied for participation in the “Far Eastern Hectare” (up today about 120,000 citizens) will be able to join forestry cooperatives at the expense of their rights to 1 hectare of land, which, in the future, will convert the cooperative shares, owned by their members, in the shares of the new companies of the wood industry

Леспром

The land, planned to be used by large timber business and recorded in the books of these companies, will enable them to increase their capitalisation, attract investments, create the entire chain of high-technology timber harvesting and processing, and create new industries, including pulp-and-paper mills.

Citizens who are participants of the programme become the owners of those timber companies.

If implementation of “Investment Hectare” is successful, it can be extended to other territories of Russia starting from Eastern Siberia.

This will allow citizens to more widely use their right to receive 1 hectare of land and join specialised forestry cooperatives and become participants (shareholders) of large corporations.

The project is based on the experience of a Swedish company Södra, which brought together 10,000 small private landowners who became its shareholders. The company owns large sawmills and a pulp mill.

Today Södra is the third largest liquid pulp producer in the world.

The Board of Södra includes representatives of citizens-shareholders, thereby realizing the form of people’s management of the company in the interests of tens of thousands of shareholders and their families.