Stockholm, 2011-08-23 18:00 CEST (GLOBE NEWSWIRE) -- RusForest Magistralny has been granted priority investment project status by the Russian Minister of Industry and Trade, Mr. Victor Khristenko. As a result, RusForest Magistralny is now included on the List of priority investment projects within the forestry industry in Russia (the "List") in accordance with Russian Government Order No. 419, and has received an additional forest lease with an annual allowable cut ("AAC") of 398,700 m3.
Order No. 419 was passed in 2007 to stimulate investments into forestry development and forestry value-adding industries in Russia. As of June 2011, there were 91 projects on the List including large pulp-mill construction projects. Projects on the List are granted access to needed forest leases without the usual auction procedure conducted in Russia, and pay 50 percent lower lease rates within the payback period of the project.
As a result of its new priority status, RusForest Magistralny has been allocated an additional forest lease in the Irkutsk region with reduced lease rates. The forest lease awarded has an AAC of 398,700 m3 and covers an area of 355,104 hectares. Additionally, the forest lease acquired by RusForest Magistralny in December 2010 (see press release issued on December 22, 2010) will have its lease rates lowered.
Following the allocation of the additional forest lease, RusForest's total AAC in the Magistralny region amounts to approximately 960,000 m3. On a consolidated basis, RusForest's AAC amounts to approximately 3.6 million m3.
For further information please contact:
Martin Hermansson, CEO, phone: +7 903 015 64 65, +7 985 921 92 32
or
Erik Löfgren, External Relations, phone: +46 705 45 34 20
About RusForest AB (publ)
RusForest is forestry and sawmilling company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long term forest leases with an annual allowable cut of approximately 3.6 million m³, and utilizes these resources to produce a wide range of sawnwood products. Eastern Siberia is renowned for its Pine and Larch of exceptional quality, while the Arkhangelsk Region in northwest Russia has high quality spruce and pine forests similar to those found in northern Sweden.
RusForest's goal is to develop into a leading independent integrated forestry and sawmilling company in Russia, with an annual harvest of 2.7-2.9 million m³ and an annual sawnwood production of 800,000-850,000 m³ during the coming four to five years.
RusForest AB's Certified Adviser on First North is E. Öhman J:or Fondkommission AB.
