A few days ago, the Russian timber industry, through regional officials, asked the government to take new support measures in terms of compensating transportation costs and improving export conditions.<\/p>\n
Today, the capacity utilization rate of Russian timber companies and the volume of timber fell simultaneously, transportation costs increased, while timber prices fell by more than half, and companies are in a state of loss for certain types of products.<\/p>\n
Mikhail Shamolin, the head of the Russian Segezha Group said: \"It is recommended not to focus on finding options to directly subsidize forestry operations, but rather to transfer mandatory taxes and other payments during the adaptation period, in addition to a direct exit from the sharply increased logistics costs\".<\/p>\n
Representatives of the industry pointed out that after losing the huge market of the European Union, as well as the termination of equipment supply contracts and the reduction of timber prices, timber companies have fallen into serious losses. Companies in the timber industry agreed that companies in the European part of the Russian Federation suffered the most.<\/p>\n
Russia's timber production fell 7.5% to 22.5 million cubic meters in the first nine months of the year which by the end of the year is forecast to be even bigger than the record 2021. 10-15% drop.<\/p>\n
Among them, the two regions of Russia, Arkhangelsk and Vologda, where timber harvesting was at the leading low level in the Federation last year, the current logging indicators have fallen from a high base, and the timber production of the Northwest Federal District has also dropped by 16%. But at the same time, the market demand for pulp, paper and board was not seriously affected, with a decline of only 3%.<\/p>\n
Regarding the reduction of production by the current timber factories in Russia, some noted that the Russian forest complex is indeed in difficulty, but it is not in a critical state. The current decline in production is not as serious as during the pandemic, but because the market demand is insufficient, the warehouses of most timber factories are full of timber, so production needs to be reduced.<\/p>\n
Industry representatives said that Russian timber companies could be supported by taking quick action to reduce the time it takes to coordinate transport applications, establishing quotas for North West timber merchants to compensate for transport costs and other measures.<\/p>","protected":false},"excerpt":{"rendered":"
A few days ago, the Russian timber industry, through regional officials, asked the government to take new support measures in terms of compensating transportation costs and improving export conditions. Today, the capacity utilization rate of Russian timber companies and the … Continue reading