Russia\u2019s timber sector could return to production growth in 2027 after the current crisis reaches its peak this year.<\/p>\n
Speaking at an industry plenary session in Moscow on 7 October, Boris Frenkel, Director of Government Relations at Sveza Group, said the recovery would depend on more efficient production, the development of commercially viable products and access to new export markets. Producers that have already modernised their operations would be better placed to compete on costs, quality and product range.<\/p>\n
\u201c2026 could mark the peak of the crisis. In 2027, we expect a return to production growth,\u201d he said.<\/p>\n
Lost markets and competition in birch plywood<\/strong><\/p>\n Frenkel said Sveza had lost access to approximately half of its export markets after 2022. The company and other Russian producers have redirected shipments to alternative destinations, but rising operating costs continue to squeeze profitability.<\/p>\n He also raised concerns about exports of Russian veneer logs and veneer. These materials supply plywood manufacturers in China, Turkey and Egypt, creating competition for Russian birch plywood producers from businesses processing Russia\u2019s own raw materials.<\/p>\n Frenkel called for export insurance, fewer tariff and non-tariff barriers, and improvements to transport infrastructure. Regulatory requirements and tariff changes should also account for current trading conditions and the time companies need to complete investment projects, he said.<\/p>\n Despite the recovery forecast, logging business closures increase<\/strong><\/p>\n The forecast comes as the number of businesses in Russia\u2019s forestry and logging sector continues to decline. The sector had 19,640 active businesses on 1 September, down 5.4% from a year earlier.<\/p>\n Figures cover companies and sole traders in forestry and logging. Liquidations do not represent a count of sawmill closures.<\/p>\n<\/div>\n Some operators had continued trading in anticipation of stronger demand, only to exhaust their financial reserves when orders failed to recover. Businesses without their own processing operations were particularly exposed.<\/p>\n Logging requires upfront expenditure on machinery, fuel and harvesting, while payment for delivered timber can arrive much later. Smaller independent operators also face labour shortages and increasing equipment maintenance costs.<\/p>\n Russian timber harvesting fell 5% year on year in January\u2013July. In Arkhangelsk, processing companies have faced higher transport costs, lower selling prices in China and difficulties obtaining forestry machinery, putting further pressure on their log suppliers.<\/p>\n For these businesses, the immediate task is to restore profitability and finance day-to-day operations before any increase in production next year.<\/p>","protected":false},"excerpt":{"rendered":" Russia\u2019s timber sector could return to production growth in 2027 after the current crisis reaches its peak this year.<\/p>","protected":false},"author":1,"featured_media":100223,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-100222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n
\nDuring January\u2013August 2026, 1,590 companies and sole traders were liquidated, an increase of 9.6% year on year. New registrations fell 19.9% to 1,210, leaving closures 380 above new entries.<\/p>\n\n\n
\n \nIndicator<\/th>\n January\u2013August 2026<\/th>\n Change y\/y<\/th>\n<\/tr>\n<\/thead>\n \n New business registrations<\/td>\n 1,210<\/td>\n \u221219.9%<\/td>\n<\/tr>\n \n Business liquidations<\/td>\n 1,590<\/td>\n +9.6%<\/td>\n<\/tr>\n \n Liquidations above registrations<\/td>\n 380<\/td>\n \u2014<\/td>\n<\/tr>\n \n Active businesses at 1 September<\/td>\n 19,640<\/td>\n \u22125.4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n