Deputy Prime Minister of the Russian Federation Alexander Novak held a meeting of the subcommission on increasing the sustainability of the financial sector and individual sectors of the economy. Among the priority topics discussed were measures to support the forestry complex aimed at ensuring its sustainable development in the current economic conditions.

The Association "Russian Timber" together with the Commission of "OPORA RUSSIA" on the forestry complex prepared an overview of the key initiatives adopted following the meeting.

Zeroing the export duty on sawn timber with a moisture content of over 22%

Responsible agencies: Ministry of Finance of the Russian Federation, Ministry of Economic Development of the Russian Federation

Goal: support for exports and reduce the burden on timber industry

The issue of temporarily zeroing the export customs duty on sawn timber with a moisture content of over 22% (with the exception of "wet" timber) has already been repeatedly raised by the Russian Timber Association together with OPORA RUSSIA and other business associations. The relevant proposals were submitted to the Government of the Russian Federation throughout 2022-2024 and were supported by the Ministry of Industry and Trade of Russia. However, no decision has been made so far.

At the same time, the Russian Ministry of Finance previously indicated that customs and tariff regulation of timber exports was formed taking into account the decisions of the President of the Russian Federation on decriminalization and development of the forestry complex and is aimed at combating illegal timber trafficking.

Indeed, the above-mentioned instructions of the President of the Russian Federation (lists of instructions from 2020 and 2023) have become an important stage in the development and decriminalization of the forestry complex. The association "Russian Timber" and "OPORA RUSSIA" took direct part in their formation.

However, in the current conditions of sanctions pressure, approaches, including to customs and tariff regulation, require revision. Thus, temporary zeroing of duties on sawn timber with a moisture content of over 22% will reduce enterprises' costs and stimulate exports.

Three-year moratorium on changes in rental rates for forest plots for timber harvesting

Responsible agencies: Ministry of Natural Resources of the Russian Federation, Ministry of Finance of the Russian Federation, Federal Forestry Agency

Goal: stabilization of forest plot tenants' costs

The Association "Russian Timber" and "OPORA RUSSIA" previously drew the attention of the Government of the Russian Federation to the risks associated with increasing fees for the use of forest resources, especially in conditions of high economic uncertainty. The proposal to postpone the entry into force of the relevant changes was supported by the Russian Ministry of Industry and Trade.

However, the changes introduced from January 1, 2024, in accordance with RF Government Resolution No. 578 of 2023, led to an increase in rates, which became an additional burden on the forestry complex.

The introduction of a three-year moratorium on further increases in rent will allow enterprises to adapt to the current economic situation.

Development of domestic production of logging equipment

Responsible agencies: Ministry of Industry and Trade of the Russian Federation

Goal: reducing dependence on imports and technological sovereignty

Development of a roadmap for the development of domestic logging equipment production is one of the most important decisions made at the meeting. The Russian Timber Association and OPORA RUSSIA have repeatedly put forward proposals to stimulate domestic production of specialized machinery and equipment.

Until now, a significant portion of logging equipment was imported, which created vulnerability for the industry, especially in the context of sanctions. Developing our own production will not only reduce dependence on foreign suppliers, but also create additional jobs and ensure technological sovereignty.

Stimulating demand for forestry products

Responsible agencies: Ministry of Construction of the Russian Federation, Ministry of Industry and Trade of the Russian Federation

Goal: expanding the use of forest products in construction, industry and energy

Creating mechanisms to stimulate demand for forest products is a key measure to support the domestic market.

However, such mechanisms have already been enshrined in the lists of instructions of the President of the Russian Federation for 2013, 2020 and 2023, and the effectiveness of their implementation raises questions.

Prospects and necessary steps

The adopted support measures are aimed at creating stable conditions for the operation of the forest industry complex, reducing enterprise costs and developing domestic production.

However, it is important to note that some of these initiatives were proposed to the Government of the Russian Federation during 2022-2024. Thus, taking into account the current operating conditions of the forestry complex and the problems that the industry is facing in the context of sanctions pressure, it is necessary to ensure a more rapid response from government bodies, as well as better execution of the instructions of the President of the Russian Federation in a number of these areas.

Andrey Goncharov, First Vice President of the Russian Timber Association, Chairman of the OPORA RUSSIA Commission on the Forest Complex:

“Strategically, the forest complex is developing, and this is the result of many years of joint work between the state and business. The foundation was laid in the instructions of the President of the Russian Federation on the development of the forest industry in 2020 and 2023, but the quality of the implementation of individual instructions raises concerns. In addition, at one of the meetings on February 11, 2025, Vladimir Putin once again indicated the need to support domestic timber processors.

In the new economic conditions, support measures should be introduced more quickly, but we see that a number of decisions are being delayed. Unfortunately, when forming their position, individual departments rely exclusively on short-term planning, without taking into account the long-term economic effect for the industry and the country as a whole.

We will continue to promote the development of the forestry complex, ensuring a constructive dialogue between the state and business. It is especially important to protect the rights and legitimate interests of small and medium-sized businesses that face objective difficulties. It is SMEs that are the driver of progress, and their support is the key to sustainable development of the entire industry."

The Association "Russian Timber" and "OPORA RUSSIA" continue to work to eliminate administrative barriers, promote the development of domestic equipment production, increase market transparency, and introduce new support mechanisms. An open dialogue between the state and business remains the main condition for the progressive development of the industry and helps to achieve solutions that provide a multiplier effect. At the same time, it seems that some of the instructions of the President of the Russian Federation are not being implemented effectively enough.