{"id":82444,"date":"2022-06-03T09:46:17","date_gmt":"2022-06-03T09:46:17","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/russia-plans-measures-support-timber-industry-context-sanctions\/"},"modified":"2025-09-19T08:57:40","modified_gmt":"2025-09-19T08:57:40","slug":"russia-plans-measures-support-timber-industry-context-sanctions","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/russia-plans-measures-support-timber-industry-context-sanctions\/","title":{"rendered":"Russia plans measures to support the timber industry in the context of sanctions"},"content":{"rendered":"
\n

At present, Russia's forest products industry is facing a series of consequences caused by EU sanctions against Russia.\u00a0For example, rising prices of raw materials and accessories, disruption of logistics with Europe, the suspension of many European companies' operations in Russia, and the departure of major manufacturers of logging and wood processing machinery and equipment from the Russian market.\u00a0Obviously, in the context of increased sanctions, Russian timber companies urgently need support at the federal and regional levels.<\/p>\n

Russian Federation Prime Minister Mikhail Mishustin recently revealed that the government is considering additional support for companies facing sanctions.\u00a0He said: \"For small and medium-sized enterprises, the government and the Central Bank of Russia will take additional targeted support measures to provide subsidies and loans to banks that cooperate with various economic sectors.\"<\/p>\n

Deputy Prime Minister of Russia Victoria Abramchenko also emphasized recently:<\/em>\u00a0\"stabilizing the timber industry and securing jobs\" is one of the important tasks the Russian government is currently facing.\u00a0In order to counter European sanctions, a series of measures to support the timber industry have been enacted at the federal level.\u00a0Among them, the task of the Russian Ministry of Industry and Trade is to speed up the formulation of import substitution plans for wood and wood products, extend the preferential loan period of the Industrial Development Fund to 5 years, and give priority to supporting wood products import substitution projects.\u00a0In addition, the federal government has introduced other measures, including: extending the implementation period of investment projects in the field of forest development by 1.5 years; suspending the one-year periodical business review of small and medium-sized enterprises; ); organize domestic enterprises to produce chemical raw materials, mechanical equipment and furniture accessories and other wood processing auxiliary products.''<\/em><\/p><\/blockquote>\n

As of now, some support measures at the federal level have begun to be implemented, and other measures will be implemented gradually.\u00a0For example, the Russian government has approved a moratorium on regular business reviews of SMEs until the end of 2022.\u00a0According to the latest news from the Russian Ministry of Industry and Trade, the pricing of chemical raw materials purchased by Russian wood-based panel manufacturers is being discussed, mainly involving urea, methanol, melamine and other raw materials.<\/p>\n

As one of the countermeasures, the Russian Ministry of Industry and Trade recently announced that it will ban the export of birch for pulp, wood chips for fuel and logs for plywood and other forest products to \"unfriendly countries\" within one year.\u00a0Although the ultimate consequences of such countermeasures are not yet clear, it can be seen at this stage that restricting the export of such forest products will directly hit the EU and US markets.\u00a0According to customs data for 2021, Russian timber exports to these regions and countries are worth about $504 million.<\/p>\n

In addition to the support measures of the federal government, regional governments and relevant organizations of the wood industry are also paying close attention to national policies and international situations, and have introduced measures to deal with the industry crisis.\u00a0Feasible measures to support the timber industry are being discussed in some regions, and in others, anti-crisis plans have already been implemented.\u00a0The main areas involved include Nizhny Novgorod Oblast, Vologda Oblast, Kirov Oblast, Komi Autonomous Republic and Krasnoyarsk Territory.<\/p>\n

Regional government initiatives<\/strong><\/p>\n

Wood industry practitioners in Nizhny Novgorod region have submitted a series of proposals to the local government, mainly related to the import substitution of wood processing production equipment.\u00a0They suggested that the local government should organize local companies to produce woodworking equipment parts that had previously relied on imports.<\/p>\n

Igor Glushko, director general of the Nizhny Novgorod Federation of Forest Owners, said: \"The economic crisis caused by sanctions has already had a negative impact on the demand side of the timber industry. The cessation of plywood supplies to European countries has made domestic plywood production almost impossible. The stagnation will directly lead to a decline in the logging of plywood logs. Previously, plywood logs used to account for 37% of the timber logging in the region. In addition to plywood, the demand for other products is also expected to decline.\" In this regard, Igor suggested that the local government Reduce the rent for forest land use, and charge corresponding fees proportionally according to the production volume of forest products.<\/em><\/p><\/blockquote>\n

In Vologda so far, the state has submitted more than 30 proposals to support the timber industry to the Russian government, and has also established a local anti-crisis headquarters.\u00a0State officials proposed that the federal government should issue quotas for transport vehicles for the administrative entities of the Northwest Federal District to transport timber products to Asian countries, reduce tariffs on timber products transported by rail, and defer payment of forest resource usage fees.<\/p>\n

Kirov Oblast is one of the most densely forested regions in Russia, and most forest products in the Oblast are exported.\u00a0The head of the state government said that under the background of sanctions, the local timber supply chain is seriously threatened, and the state is currently working hard to build a new logistics system.\u00a0In addition, the shortage of supporting equipment and necessary parts for timber production facilities is also an urgent problem to be solved.\u00a0To this end, the state government has begun to take the lead in helping wood companies in need to find local manufacturers.<\/p>\n

The government of the Autonomous Republic of Komi decided to support biomass pellet fuel and briquettes production enterprises by resuming subsidies to offset some of the costs incurred by related enterprises due to new or expanded production capacity, upgrading of modern equipment, etc.\u00a0It is initially estimated that the maximum subsidy amount for each enterprise is 5 million rubles (about 56,300 US dollars).\u00a0In addition, the government of the Republic also plans to accelerate the transformation of traditional boiler room energy utilization types in the region to biofuels.<\/p>\n

In Krasnoyarsk Krai, to support local timber traders, Governor Alexander Uth proposed that the forest industry should first be included in the list of sectors affected by sanctions in Russia and that transport subsidies should be provided for the export of wood pellet fuel to the Asian market .\u00a0Second, tax relief should be considered for export-oriented forestry enterprises.\u00a0At the same time, the implementation period of the forest products industry investment project was postponed by one year, and farmers were allowed to engage in logging activities.<\/p>\n<\/div>\n

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At present, Russia’s forest products industry is facing a series of consequences caused by EU sanctions against Russia.\u00a0For example, rising prices of raw materials and accessories, disruption of logistics with Europe, the suspension of many European companies’ operations in Russia, … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":50643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[3311,4516,3264],"class_list":["post-82444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-russia","tag-sanctions","tag-timber","topic-forestry","topic-sawmilling","topic-wood-based-panels","area-russia"],"acf":[],"yoast_head":"\nRussia plans measures to support the timber industry in the context of sanctions - 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