Key trends in timber industry: ban on export of unprocessed wood

We've compiled ten key trends that have impacted the forestry industry over the past decade and will continue to shape it in the coming years. The second trend on our list is the ban on the export of unprocessed wood.

On January 1, 2022, a ban on the export of unprocessed softwood and valuable hardwood came into force in Russia. This ban, as a measure to stimulate deep processing in Russia, became an expected step for the forestry sector - a corresponding order from the President of Russia was given back in 2020 following a meeting on the development and decriminalization of the forestry sector. Other instructions of the same meeting included the development of the timber processing business and stimulation of consumption of forestry products by the domestic economy, strengthening the human resources potential of the industry.

Olga Kalyuzhnaya, President of the Russian Forest Association: “Not all enterprises in the industry were ready for the ban, however, the production volumes of highly processed products - lumber, wood boards, cellulose, paper and cardboard - have shown growth since 2017 of the year. Of course, in 2022 the industry faces new challenges. But here, too, business support mechanisms were promptly developed and implemented. The industry support program continues today.”

Since January 1, 2022, when the ban came into force, the domestic market began to be considered by lumber manufacturers as one of the main areas for selling products. According to Deputy Prime Minister Victoria Abramchenko, the introduction of a ban on the export of valuable timber and the creation of a timber traceability system at each stage of its movement made it possible to reduce the volume of illegal logging in the country by 40% in 2022 alone, and increase budget revenues from the use of forests by 19% - up to 67 billion rubles

Based on the results of the first ten months of 2023, the forestry industry demonstrates stability thanks to a fairly successful transformation of work. The predicted volume of wood harvesting at the end of the year is about 200 million m³.