Russia’s timber industry, once worth $20 billion per year, still has very strong prospects for growth. That is according to Vladimir Putin, who spoke up about the industry during a government meeting yesterday:
“I would like to note that the forestry industry has good prospects and large reserves – I would like to emphasise this: large reserves and good prospects for growth.”
Putin, who spoke via video link, commissioned three processing facilities: a particleboard plant in Kaluga, a decorative laminated paper plastic mill in Leningrad and a liquid food packing production floor in Moscow.
The positivity comes amid reports from Russia showing that transport companies have already begun lowering their costs—in preparation for Western companies potentially re-entering the market if and when Putin signs a ceasefire with Ukraine—leading to the relaxation of sanctions, which have already crunched more than 30% of Russia’s export markets.
Russia is the world’s most forested country, with about 20% of the world’s timberlands growing inside its borders. According to Alexander Kurenkov, Putin’s Minister for Civil Defence, Emergencies and Natural Disasters, wildfires are now burning in more than 69 different areas across Russia.
“According to the Aerial Forest Protection Service (Avialesokhrana), more than 680 wildfires have been documented in the Russian Federation since the beginning of the year, covering a total area of over 178,000 hectares, which is significantly more than last year,” he said.
- To learn more about the impact of Russian sanctions on the global supply chain of timber products and the effect that lifting sanctions could have on global timber prices over the short, medium and long term, click here for Wood Central’s coverage of a study compiled by the North Caroline State University and the USDA Forest Service Forest Products Laboratory.
