<P> Ilim Group gained the largest net benefit un 2008 (1.67 billion roubles) and was also listed in the Top 50 forest industry companies as having the largest revenue (37.92 billion roubles). </P> <P> The Top 50 Russian Forest Industry rating is prepared and published by Lesnaya Industriya magazine on the base of companies' accounting reporting and data provided by th companies . </P> <P> The forest industry is harvested annually about 0.5 billion tons of biomass, of which production is only 25% . Do not use needles, bark, twigs, that apparently is due to irrational use of extracted raw materials . The finished product is converted only 11% of the feedstock . In addition, according to the voiced in autumn 2011 Forest Club participants at the St. Petersburg International Forestry Forum, Russian timber industry is faced with the following problems: </P> <P> The increase in fuel prices; Problems of transport and logistics . Including commercialization and transport companies serving the forest industry, which caused an increase in the final cost of forestry products; Problems of legal regulation of the lease and the organization of auctions for the right to lease forest areas; The lack of a coherent foreign countries the regulatory framework governing economic relations; The cost of cleaning systems for water and air resources used in the timber industry; The absence of a competent methodology of selection of investment projects in the timber industry . (7) </P>

What are two important challenges to russia's forestry industry