COMPANIES SPECULATED WITH FOREST RESOURCES IN THE KRASNOYARSK REGION

11-05-2018 | 10:01

Krasnoyarsk OFAS exposed an unlawful scheme of alienating forest vegetation in the Russian Federation (1.8 million m³) aimed at reselling timber

 

FAS Presidium recognized the case among the best practices of exposing bid-rigging collusion in 2017.

 

The Ministry of Natural Resources and the Environment of the Krasnoyarsk region and “Krasnoyarsk Forestry Office” State Enterprise of the Krasnoyarsk Region colluded for special auctions under the conditions of using forest vegetation for public and municipal needs. As a result, the enterprise used the woodland (timber) in 2013 - 2015 for sale (resale) to third parties. The total scope of alienation reached 17% of the annual wood harvesting in the Krasnoyarsk region.

 

The enterprises’ income from selling wood reached over 242 million RUB, which is eight times higher than the sum transferred to the budget.

 

OFAS suppressed an illegal scheme of alienating forestry resources of the Russian Federation and misuse of timber; significant wood resources, reserved for the needs of the enterprise, were made available and auctioned.

 

The decision formed the grounds for opening a criminal case by the Office of the Federal Security Service against the former Minister for Natural Resources and the Environment of the Krasnoyarsk region. The high-profile case had a significant effect in terms of preventing abuse of office in this segment.