1. SECTOR PROGRAMME FOREST

2. CONCEPT Bilateral or Multilateral Interaction between companies, educational institutions and governmental organisations in order to: - identify and agree upon key issues - initialize and create projects in order to find bilateral or multilateral solutions for solving and developing key issues The projects will be developed on the base of the Barents strategy and support creation of The Barents Forest Industry Zone

3. SECTOR PROGRAMME SCHEME Projects and Actions (run by approved actor) NORDIC PROGRAMME COORDINATOR IN COOPERATION WITH RUSSIAN COORDINATOR Private companies, governmental actors and financial institutions in Russia Private companies, governmental actors and financial institutions in Nordic region

4. Nordic organisation of Sector Programme Forest Coordinator: Swedish Forest University/ Swedish National Board of Forestry in cooperation with for example Joensuu Forest University Private actors: Forest industrial companies, equipment suppliers Governmental actors: Västerbotten administration Vindeln Kommun Swedfund SIDA Swedish National Board of Forestry Finnish Ministry of Industry&Trade Finpro Oulu University Regional administrations

5. Partners in Russia KOMI: Ministry of Industry, Forest Institute, Voluntary School no 20, Mondi Pulp and Paper, Local forest companies ( ARCHANGELSK: Regional administration, Technical university, Forest college, Association of SME forest companies, Local forest companies) KARELIA: Ministry of Economic Development, SKBIC, Petrozavodsk State University, Kostamus City Administration, Local forest companies

6. Components Logistics Financing Education/Training Social aspects of mechanization Wood Processing/drying Fuel conversion Harvesting methods Silviculture Certification (ecology, environmental) Use/supply/demand of wood waste and forest resources

7. Identification of and contact with: Harvesting companies/forest companies in Russia - Ongoing Needs of technical development,training – See above Existing logistic solutions, possible future solutions, infrastructural situation – Ongoing Investigate possibilities for russian tonnage/train to transport forest resources to the gulf of bothnia - Ongoing Possibilities to have access to forest areas by direct leasing or by cooperation with existing russian partners -OK Contact with forest universities in Karelia, Archangelsk, Komi - OK Dialogue/cooperation with finnish forest universities - Ongoing Coordination with Swedish National Board of Forestry of activities in Russia - Ongoing

8. FOCUS 2006 EDUCATION - establishment of training(machine operators) in Syktyvkar, continous forest training in Kostamus, training as a tool for business with forest companies both for equipment and forest resources SOCIAL CONSEQUENCES OF MECHANIZATION LOGISTICS – Barents Link, forest roads, timber transportation FUEL CONVERSION-PELLET PRODUCTION INCREASED TRADING: with wood waste, pulp wood and sawlogs SILVICULTURE/FOREST MANAGEMENT: Regeneration, cleaning, thinning, forest management plans

9. Action plan 2006(first 6 months) Komi – meetings and negotiations regarding training center for machine operators – 23rd of january-27th of january. Karelia - Identification, communication, evaluation and meetings with russian harvesting companies – 29th of january- 3rd of february. Archangelsk – later in the spring/early summer Meeting with Swedish Forest Industry – 10th of february in Vindeln, Sweden Sector Programme Conference – 21st of february in Petrozavodsk 1st Business trip – 13th-17th of march in Karelia Barents Link conference - 23rd-24th of march in Kajaani MONDI Business Paper visit Sweden in may preliminary

10. Business Trip to Karelia Preliminary agenda: 13th of March 07.00 departure from Umeå with charter bus to Kostamus Arrival 19.30 local time in the evening. Accomodation in Hotel Fregatt(our hotel during the whole week) 14th of March Departure in the morning to Mujeserski Lespromkhoz, harvesting volume 800 000 cbm using both harvesters and manual cutting. Export of round logs and pulp wood. All day meeting with the company and in the evening departure back to Kostamus again. 15th of March Visiting IKEA/Swedwood premises in Kostamus, after lunch meeting with Kostamuksha Les(harvesting volume 120 000 cbm/harvesters, official meeting with Mayor of Kostamus and in late afternoon reception with invited guests from local forest industry. 16th of March Departure in early morning to Pyazero Lespromkhoz, harvesting volume 320 000 cbm, using both harvesters and manual cutting. Meeting with company management.Export of round logs and pulp wood. 17th of March Departure for Umeå and arrival in the evening. Within Russia we will travel in a smaller bus, Mercedes sprinter. Due to limited transport capacity we have to maximize the number of participants to 12 !

11. What is needed for future ! A coordinating organisation of the programme – what organisation will carry our activities within Sector Programme Forest ? Financing Support from companies - are we doing the right things and shall we continue ? Governmental activities in cooperation with Finland towards Russia– for example regarding railroads and logistics