FRA Welcomes New of Major Russia-China Forestry Investment
FRA has welcomed news that a fund jointly run in Russia and China is to invest some $200
million in a Russian forestry company.
Bainbridge Island, WA, September 27, 2012 - Forestry Research Associates (FRA) has welcomed
news that a fund jointly run in Russia and China is to invest some $200 million in a Russian
The deal has been struck off the back of an initiative launched at a summit intended to promote
Asia-Pacific regional cooperation, from an economic perspective.
The deal involves an investment in Russia’s second-largest forestry products business, called
Russia Forest Products, while the Chinese/Russian fund is simply called the Russia-China
Investment Fund. The investment means that Russia Forest Products will now be able to produce
forestry products with higher values and of better quality.
The forestry business is allowed to fell some 4.5 million cubic metres of timber each year and
controlled some 6.4 million hectares of forests under a long-term lease deal.
The news that the investment has taken place was welcomed by FRA, which advocates investment
in forestry management projects – particularly sustainable ones, such as the Greenwood
Management plantations in Brazil and Canada. “Investing in sustainable forestry schemes is one of
very best ways to ensure that you not only see a great return on your alternative investment, but
that you can help to reduce deforestation in some of the most vulnerable regions of the world,”
commented Peter Collins, the analysis partner at FRA.
The returns seen by forestry investors over the past decade or so are often better than the
average returns for those investing in stocks and bonds. In addition, the plantation projects run
by Greenwood Management can help to produce charcoal for the steel industry in Brazil, which
helps steel firms avoid using charcoal produced by burning native timbers.
“Sustainability is the key to forestry investments and anyone considering investing in forestry
should look for plantation schemes that are run on a cycle system, so that older trees are cut
down when new trees are being planted,” added Mr Collins.
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394