H2 2024’s 10 key insights from the Russian timber industry

We have prepared for you 10 key news of the Russian timber industry for the second half of 2024.

1. Sveza acquired Kama pulp and paper mill

The purchase agreement was signed in early August, with the FAS approving the deal in September. Anatoly Frishman, CEO of Sveza-Les, commented on the merger's prospects: 'I am confident that we will bring the best practices of both companies to the combined structure. It is worth noting that there is a steady demand for paper and cardboard, both in the Russian market and abroad. At the same time, the modern approach to developing the Russian pulp and paper industry lies in increasing the depth of wood processing and, ultimately, advancing the entire domestic timber sector.'

2. The Vologda Forest Industries sawmill, formerly owned by Metsä Group, is back in operation

The enterprise, now renamed VLP Svir, is located in the Leningrad Region. By 2025, it is expected to reach its design capacity, producing 300,000 cubic metres of sawn timber and 140,000 cubic meters of wood chips annually.

3. SPIMEX added charcoal to its product range

Top-grade A charcoal is now available for purchase at the St. Petersburg International Mercantile Exchange (SPIMEX). This new product has expanded the assortment within the Timber and Building Materials section.

4. Khabarovsk Territory shipped veneer to India for the first time

In October, the first consignment of veneer from Khabarovsk Krai was shipped to India in containers. The export delivery volume was approximately 1.5 thousand cubic metres.

5. Birch timber exports from Perm Krai to China have tripled

Between January and mid-December, timber enterprises in the Perm Territory increased birch timber exports to China by 3.2 times. The total volume of roundwood and sawn timber exports reached 7.97 thousand cubic metres, significantly up from 2.45 thousand cubic metres during the same period last year.

6. The revenue of Russian timber processing companies has increased by 23%

From January to September 2024, the profits of Russian timber processing companies increased by 62%, while their revenues grew by 23%. Additionally, from January to October, forest product output rose by approximately 5%.

7. RUR 62.5 billion will be allocated for forestry financing in 2025

According to the press service of the Federal Forestry Agency, 62.5 billion rubles will be allocated from the federal budget for forestry development in 2025, representing a 10% increase compared to last year. Regions will also receive additional funding of 9.3 billion rubles: 5.9 billion rubles will be designated for forest fire protection, and 3.4 billion rubles will go towards increasing the salaries of forest workers.

8. Illegal logging volumes have been reduced by 41%, according to data from Roslesinforg

From January to September, the volume of illegal logging decreased by 41% compared to the same period last year, reaching 115.1 thousand cubic metres. There were 589 cases of illegal logging, a 22% reduction from 2023, which had 758 cases.

9. AMDPD predicts a 15% rise in the price of furniture

According to forecasts from the Association of Furniture and Woodworking Industry Enterprises of Russia (AMDPR), prices for furniture produced in Russia may rise by 15% in the near future. This is due to duties that Vladivostok customs plans to impose on Chinese fittings, following a change in the codes of these goods in the TN VED. As a result, the duty could increase from zero to 55.65%.

10. 12 PIPs have been agreed upon for the development of the Russian timber industry complex

From January to October, the Federal Forestry Agency approved 12 priority investment projects for the development of the domestic timber processing industry. These approved projects include the establishment of new wood processing facilities as well as the modernization of existing ones.