As one of the world's leading producers and exporters of oil and gas, biofuels have an insignificant share in the overall energy production matrix of Russia, estimated at only 1.2 percent, with biomass accounting for only 0.5 percent. While there are no official statistics that measure the share of total energy production attributable to biofuels, it is estimated that at most biofuels accounts for five percent of Russia’s heating energy and one percent of its electrical power. The development of the biofuels sector has never been a priority for the government in the past, and currently, with the strong focus on development of import substitution and export support programs, biofuels is even less of a priority. No major breakthrough is expected at least in the short-term. Wood pellet production and exports will likely continue to increase by 10 percent or to 1.45 MMT in CY2017, driven primarily by strong demand from Europe and more interest from the Asian markets, soft ruble and increasing local consumption.