Russia’s Federal Tax Service has filed a bankruptcy petition against one of Siberia’s largest timber firms, Tobol Timber Company, over millions of rubles worth of unpaid taxes, Russian media reported last week. The Federal Tax Service asked a regional arbitration court to initiate bankruptcy proceedings after Tobol’s bank accounts were frozen on September 12, according to Ura.ru.
Tobol’s troubles mirror a wider crisis in Russia’s forestry sector. Last week, Alexei Mordashov’s Sveza group halted operations at its Tyumen plywood plant and laid off 323 workers after sustained output declines and mounting losses. In July, the Russian Pulp and Paper Association warned that a strengthening ruble and collapsing exports to Europe could trigger industry‐wide closures.
Earlier this month, Wood Central reported that chronic bottlenecks on Russia’s rail network have delayed timber shipments even as exporters chase new markets in Southeast Asia. At the same time, weakened demand from China and fierce competition from other suppliers have eroded profit margins across the sector.
Founded in 2018, Tobol Timber specialises in sawmilling and wood planning but has struggled for several years, before the Ukraine war, but especially as a result of Western Sanctions. In 2024, its revenue fell 15.5 per cent to 123 million rubles ($1.5 million), while losses narrowed only slightly to 72.9 million rubles ($870,000) from 87.5 million rubles in 2023. The firm has recorded losses in six of its seven years of operation, with a single profit in 2021.
Owner and director Alexander Kiltau, the company’s sole beneficiary with a 17.3 million‐ruble stake, has blamed sanctions: “Our inclusion in the European Union’s sanctions list and falling prices for Russian timber have squeezed our margins,” he told the Moscow Times, before revealing that commodity‐price volatility has battered the industry.
- For more information about the impact of Russia’s war in Ukraine on the global timber supply chain, click here for Wood Central’s report.
