Revisiting the development of concession relations in region’s forestry

Intensive development of the timber potential of thickly wooded regions in Russia’s European part led to negative alteration of forests’ species composition. It consisted in reduction of softwood stand volume and planted area, therefore in decrease of its customer value. This problem is partly determined by inadequate forestry legislation concerning wood resources management based on the renting mechanism; its conditions do not stimulate a leaseholder to invest in the extensive forest regeneration. The analysis of legislative framework development revealed that the relationship in the context of forest leasing in the Russian Federation presents a unique form of cooperation between state and business, unknown in the foreign practice regarding economic management of forests. In addition the world’s practice shows that the most promising form of organization of economic management of forests is a concession. The article reveals its essential and dissimilarity from the current renting mechanism. The authors also offer an algorithm of implementation of concession relations in regions’ timber complex. Within this algorithm the authors present methods of formation of forest area value and the procedure for determination of the minimum concession term.