COUNTERVAILING RISK MANAGEMENT IN THE FOREST SECTOR THROUGH EXCHANGE-TRADED INSTRUMENTS: CONDINIONS AND DEVELOPMENT PROSPECTS

Abstract

For the world community, 2020 marked the beginning of change on a global scale. Pulmonary disease epidemic, which spread at a lightning speed throughout the globe, not only exposed the negative aspects of globalization, multicultural society and single economic plateaus, but also provided opportunities for the formation of new trends in economic management. In isolation, positive dynamics were observed in areas with on-line trade opportunities, and negative in traditional energy markets. In this regard, the author carried out a comprehensive analysis of the financial instruments used on the exchange, which made it possible to form a comparative characteristic of hedging, option, futures, derivative and forward. The relationship between the values of wood and the forest area on which it grows has been established and presented by the inequality system. Methods of compounding and discounting are considered in detail, on the basis of which a mechanism for determining the net present value of the cost of growing forest plantations as a capital benefit is proposed. The author gives a calculation of the costs of growing ordinary pine seedlings, and a comparison of the weighted average interest rate on deposits (in rubles) and average inflation, made it possible to prove the investment attractiveness of forestry not only for private business, but also for the state. The study provides an overview of the practices of leading «forest» States on interest rates applied to forest investment. In the conclusion of the article, the author concludes that compensatory risk management in the forest industry is possible using the hedging mechanism of measures by concluding forward contracts for the cultivation of seedlings of a certain tree species.