Russia: Forestry Policy and Trade Update

Russia’s wood production is far below its potential as a result of ineffective public policy programs, inefficient forest use, poor infrastructure and lack of investment. The forestry sector’s share of Russia’s GDP is only 0.7 percent. The forestry sector’s share of total production of all industrial products in Russia is estimated at 3.7 percent. In 2015, analysts forecast continued growth in production in some sectors, specifically for plywood, veneer, cellulose and paper industries, driven by a strong demand from Europe. During January-September 2014, total exports of wood products are estimated at $6 billion, an 11 percent increase versus the same period in 2013. This increase is largely driven by an increasing demand from Asian markets and Finland. Despite government calls for increased domestic processing of exported products, Russia’s exports still primarily consist of logs and low-processed wood, which account for 65 percent of total wood products exports.

Russia: Forestry Policy and Trade Update