LOGGING INDUSTRY IN RUSSIA: INSTITUTIONAL DEVELOPMENT OF ECONOMICAL RELATIONS BETWEEN THE STATE AND BUSINESS
The research deals with the main problems of economical relations in the modern Russian Law, where the conditions of interaction between the State and Business virtually provoke the activity of illegal timber operators. These conditions differ much from those in the 1<sup>st</sup> world countries. One can think of the particular dynamics of the society development in economy in the above mentioned countries, where each logging operator’s obligation exists in addition to a privilege of the timber industry. The author considers the shortcomings of operating national legislative system of the Forest Code as well as the factors that contribute to stability and resistance of the shadow economy in the forest industry. The instruments to decline the shadow economy level are presented. It is proved that delineation of the subject’s responsibility in the form of the State and Business will decline the profitability level in illegal logging and will increase the level of budget revenues, that will stimulates business.