EcoArmenia Unveils Study "Economics of Armenia’s forest industry"

PRESS RELEASE
ARMENIAN FORESTS NGO
38 Moskovian str., apt 10
Yerevan 02, Armenia
Contact: Mher Sharoyan,, Public Relations Officer
Phone: (374 10) 54-15-29, 58-20-39
Fax: (374 10) 58-20-39
E-mail: [email protected]

EcoArmenia

NEWS RELEASE

WHO PROFITS FROM DEFORESTATION?

YEREVAN, Armenia – 27 June, 2007 – Today a new alliance released an
unprecedented economic study that unveils the system of profits from
illegal deforestation in Armenia. The event held at Yerevan’s American
University of Armenia was initiated by EcoArmenia alliance with support
from the British Embassy in Armenia and OSCE office in Yerevan.

Armenia is one of the world’s 70 countries where forests cover less
than 10% of the country’s area. In today’s Armenia deforestation is
largely due to illegal logging of forests for obtaining construction and
fuel wood. For the last decade the amount of incomes received from
illegal wood businesses inside Armenia as well as export of unprocessed
wood and wood products reaches millions of US dollars in Armenia.

As the deforestation in Armenia has reached a critical level, the
issue is a priority for local environmental groups and international
organizations. Four organizations–WWF Armenia, American University of
Armenia’s Environmental Conservation Research Center, Armenia Tree
Project Charitable Foundation and Armenian Forests NGO-formed the
EcoArmenia alliance in 2006 to help shift Armenia from a mode of
deforestation to reforestation. In winter 2007, with the involvement of
OSCE Armenia office and financial support of the British Embassy in
Armenia, the coalition initiated and financed a preparation of an
unprecedented study that would unveil the economics of illegal wood
businesses in Armenia.

The study called "The economics of Armenia’s forest industry",
prepared by Economy and Values Research Center, exposes the financial
flows in the sphere of unprocessed wood utilization and wood processing
industries, the volumes of export of unprocessed wood and wood products,
pinpointing the existing environmental issues and presenting some
economic recommendations towards solving the deforestation problem in
Armenia.

"This unique report helps bring light to one of the darkest areas of
Armenia’s economy," stated Jeffrey Tufenkian, President of Armenian
Forests NGO. "We see this not as an end in itself, but an excellent
point from which we can all move forward to help shift Armenia from a
mode of deforestation to reforestation".

Underlining the stance of international organizations towards the
problem, Jeanette Klotzer, Economic and Environmental Officer at OSCE
Office in Yerevan said "To support Armenia’s authorities and civil
society in sustainable forest management is in the focus of our
activities in view of the OSCE’s comprehensive approach to environment
and security. Raising awareness and national capacity building are
important steps on the way to prevent illegal logging and to restore
Armenia’s forests as an environmental and economic category."

A staunch supporter of stopping deforestation in Armenia, the British
Embassy, expressed its full support for the study by co-financing it.
Quoted on the decision to support the initiative, Richard Hyde, Charge
d’Affairs of the British embassy in Armenia stressed that "The future of
Armenia’s forests are at a critical juncture. We hope this study will
help in the process to save Armenia’s forests for current and future
generations."

The study shows that 9% of households in Armenia use wood as fuel for
cooking and heating, and more than 300 small, medium and large wood
processing companies operating in Armenia utilize 10 times more wood
than the volumes set by the state for annual cutting. Overall annual
income from wood business operations equals 132 million USD within
Armenia, including the profits received from the export of unprocessed
high quality wood.

The study recommends addressing the problem of deforestation on
economic by expanding natural gas supply to remote villages via
micro-credits, exempting of taxes for importing wood to Armenia, ban on
export of unprocessed wood from Armenia, supporting alternative energy
resources and developing eco-tourism.

To obtain an electronic version of the summary findings or full report
in Armenian or English please contact Mher Sharoyan at (374 10) 54-15-29
or write to [email protected].

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www.ArmenianForests.am