Efforts to bolster Russia’s timber sector have yet to produce the promised results. Despite discussions with President Vladimir Putin in February, measures such as postponing forest rent payments, boosting export transport subsidies, and improving logistics have not translated into tangible gains for the industry’s leading players, according to industry insiders cited by Kommersant.
Timber traders remain frustrated with the level of state aid provided. Proposed relief includes suspending the planned rent increase for forest land, extending subsidies for timber and its exports, and expanding the schedule of shipments to ports on the Baltic basin and other routes. The ongoing debate highlights a broader concern about how quickly and effectively government support can reach the sector’s day-to-day operations, as reported in the coverage.
Industry representatives argue that accelerating the adoption of a draft resolution developed by the Ministry of Natural Resources could help. The proposal would allow forest land rent for 2023 to be calculated based on actual timber harvest volumes, pause the 4.6% rent rate indexation planned for 2024, and shift the effective date of new rent calculation rules to January 1, 2026. This approach aims to align financial obligations with real production activity and reduce pressures on timber businesses during a challenging period, as described in the material.
On February 11, Industry and Trade Minister Denis Manturov announced that Russia had increased processed wood exports to North Africa, the Middle East, and regions across Central and Southeast Asia. The reach of exports spans timber, plywood, paper, cardboard, and cellulose products, signaling a strategic push to diversify markets and sustain domestic wood processing capacity in the face of shifting global demand.