Environmental Economy Development with Financial Mechanisms as a Part of Import Substitution in Timber Processing Industry

Abstract

Over the last 25 years forestry complex in the Russian Federation has been increasingly importing products to cater for the domestic timber and paper industry due to a range of objective and subjective reasons. The article focuses on the major systemic causes of import dependence growing including most recent economic meltdowns that have damaged timber processing industry and reduced competitiveness of timber products, insufficient innovations and investments, etc. The authors have conducted the analysis of governmental measures of stimulation to support forestry companies adopting innovations in techniques and technologies as a part of import substitution programs realization. Technical and technological base of forestry companies mostly reflects the effectiveness of companies’ environmental management, limitations, orders and the possibilities to maneuver. Proper balance of stimulations on one hand and restrictions – on the other hand in different areas of business cycles such as forest resources extraction, processing, renovation can let the government not only to make the impact to economic growth but also provide ecological security of the country. Current conditions of Russian forestry complex are not so satisfactory. Low efficiency and high ecological risks are unfortunately the traditions of the last years. All these aspects tell us about great actuality of the research area. In the article the authors get the following results: the measures of timber processing industry stimulation are determined – subsiding from banking sphere, creation of conditions the technical and technological base will be possibly favorable to develop, increasing of domestic demand, focus on prioritized investment projects and etc.