Currently enterprises in Russian timber industry are operating under the conditions of uncertainty. The main document regulating our activity is the Forest Code and it is undergoing changes now. Introduction of new laws depends on development strategy of the country. If we'd like Russia to be a strong power it is necessary to pay the most serious attention to the future of forest industry.

The state has to determine the way of Timber Industry Complex development to reveal the potential of the important sector of economics. It requires deep understanding of situation and its proper analysis. The authors of Amendments to the Code should take into consideration all available resources and production capacities, study in details strong and weak sides of forestry industry, its position in the world market, existing competitors and the ways of overtaking them. Only after that, based on information received, strategy of development should be worked out.

Russia has to create conditions for effective owners in the industry to emerge and to change investment policy. We hope that attention paid by the Government to these problems will give significant results.

Expecting the changes "Cherepovetsles" carries on its activity. We have already determined our position in industry for today and also see it in the future. Strategic development program of the company for the next 7 years has been introduced. We understand that this document is not a dogma. It is adjusted taking into consideration changes which are taking place. But the main target we have set is not to be changed. And we are reaching it, step by step.

Principles determining company's activity are the following: competitiveness, environmental protection and concern for people's well being. These principles are closely connected with each other. Really good product can be produced only by people who are confident both in their job, their company and it's success.

Such people are the main potential of "Cherepovetsles". Together we can overcome all difficulties and meet our future confidently — the future that we are creating already now — the future the "Cherepovetsles" certainly has.

The Chairman of the Board
S. Soukharev

The Board

The supreme managing body of "Cherepovetsles" is general meeting of shareholders. During the periods between shareholders meeting the supreme managing body is the Board of directors.

It consists of 5 directors elected at annual shareholders meeting by ordinary voting. The Board carries out general management of the company. The main task of the Board is developing the company's policy in order to make it's activity more profitable.

Members of the Board:

• Soukharev Sergey Alexeevich — The Chairman of the Board
• Grachev Victor Vasilievich — Deputy Governor of the Vologda region, the Head of industry, production and forest Department.
• Makarov Eduard Vladimirovich — Deputy General director of "Cherepovetsles".
• Pissarev Valeri Nikolaevich — General director of "Cherepovetsles".
• Fedossov Andrey Mihailovich — General director of "Torginvest".