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Pursuant to Part 1 of article 50.2 of the Forest Code of the Russian

Federation, the wood of valuable forest species (oak, beech,

ash) is subject to mandatory labelling by those engaged in its

export from the Russian Federation. In addition, the Forest

Code establishes the procedure for enumeration of tags, the

requirements for their mounting, manufacturing and capabilities

for scanning the information. The establishment of mandatory

requirement for labelling of oak, beech and ash will allow to

tighten the control of the foreign trade in valuable timber.

Article 50.4 of the Forest Code of the Russian Federation,

which entered into force on 1 July 2014, requires the presence

of accompanying documentation for each shipment of

transported timber other than quantities harvested by

individuals for their own needs. It is estimated that individuals

have declared up to 6 per cent of mercantile timber as being

for their own needs.

In 2012, the Russian Government included timber in the list of

strategic goods to be accounted for when moving across the

border.

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During that year the Siberian customs office initiated

63 criminal cases, including 53 involving the smuggling of logs

and timber products that were valued at half a billion rubles

(US$ 15.1 million).

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The Uniform State Automated Information System (EGAIS) for

the accounting of timber was launched on January 1, 2015.

The system is supposed to provide information on i) the

actual volume of harvested timber and its labelling (including

the individual labelling of oak, beech and ash products for

export); ii) companies and individuals, who have made timber

transactions; and iii) declarations of such transactions etc.

Parties on both sides of transactions involving timber are

required to provide information to the EGAIS from 1 July, 2015.

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As of 1 July, 2015, all legal entities and entrepreneurs dealing

in wood, are required to submit an online declaration of all

transactions in the form of an electronic document with an

electronic signature to

Rosleshoz

, the operator of EGAIS. The

form of the document and the procedure are set out by the

resolution of the Government of the Russian Federation of

06.01.2015 № 11. Failure to submit, late submission or the

provision of deliberately false information entails, as of 1

January 2016, an administrative fine. For officials the fine

is between 5,000 and 20,000 rubles; for persons engaged

in entrepreneurial activities without forming a legal entity,

between 7,000 and 25,000 rubles; and for legal entities,

between 100,000 and 200,000 rubles.

In addition to these state measures, a number of national and

international environmental organizations like WWF Russia

and Greenpeace have been working to stop illegal logging in

Russia. However, illegal logging still poses significant threat to

forests and their biodiversity.