{"id":89070,"date":"2025-07-17T04:43:51","date_gmt":"2025-07-17T04:43:51","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/russian-timber-giants-in-jeopardy\/"},"modified":"2025-09-19T09:04:38","modified_gmt":"2025-09-19T09:04:38","slug":"russian-timber-giants-in-jeopardy","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/russian-timber-giants-in-jeopardy\/","title":{"rendered":"Russian timber giants in jeopardy"},"content":{"rendered":"<p data-start=\"390\" data-end=\"708\"><span id=\"more-38648\"><\/span>Russia\u2019s forest products industry is facing a critical downturn, with sector leaders warning of potential shutdowns unless state authorities intervene. Currency fluctuations, reduced domestic demand, and limited export opportunities have combined to put many wood processing and pulp companies in a difficult position.<\/p>\n<p data-start=\"710\" data-end=\"1086\">In a letter sent on July 8 to Minister of Industry and Trade Anton Alikhanov, a major industry association representing the pulp and paper sector requested the creation of a crisis response task force. The group urged the ministry to convene an emergency meeting with forestry and processing companies, citing what it called one of the most difficult periods in recent memory.<\/p>\n<p data-start=\"1088\" data-end=\"1350\">Data shared in the letter point to significant contraction across the sector. Timber harvesting volumes fell 13% in 2024 compared to 2021 levels. Lumber output dropped by 11%, plywood by 23%, and even pulp production \u2013 traditionally more stable \u2013 declined by 3%.<\/p>\n<p data-start=\"1352\" data-end=\"1642\">The difficulties were initially concentrated among mechanical processors after the loss of access to foreign markets. Large exporters such as Segezha Group and ULK Group began restructuring loans in 2023\u20132024 in response to declining production, falling prices, and surging operating costs.<\/p>\n<p data-start=\"1644\" data-end=\"1955\">Conditions worsened in early 2025 following a sharp 22% appreciation of the ruble against the dollar. For export-focused companies, the stronger currency has reduced competitiveness, while rising borrowing costs and a recent increase in the corporate tax rate from 20% to 25% have added to the financial burden.<\/p>\n<p data-start=\"1957\" data-end=\"2269\">Companies also cite a slowdown in China, previously a key buyer of Russian wood products. The ongoing U.S.\u2013China trade dispute and persistent stagnation in Chinese construction activity have further reduced demand. Meanwhile, domestic consumption is weakening, and prices continue to fall across most categories.<\/p>\n<p data-start=\"2271\" data-end=\"2423\">Executives warn that unless the situation improves, more pulp and paper plants could become loss-making and face closure by the second half of the year.<\/p>\n<p data-start=\"2425\" data-end=\"2578\">Speaking to <em data-start=\"2437\" data-end=\"2449\">Kommersant<\/em>, ULK Group CEO Vladimir Butorin said: \u201cThere\u2019s no market for pellets, roundwood, or wood chips, and lumber prices keep falling.\u201d<\/p>\n<p data-start=\"2580\" data-end=\"2935\">Segezha Group also reported deteriorating conditions across the sector, pointing to weak exports, logistics cost increases, falling demand, and lower asset efficiency. The company noted that high interest rates and a strong ruble are impacting both production and sales. A shift toward looser monetary policy, they argued, could help stabilize operations.<\/p>\n<p data-start=\"2937\" data-end=\"3301\">Officials from the Arkhangelsk region added that weak domestic demand is affecting even products like corrugated packaging. With supply now exceeding demand, prices are under pressure, while container freight costs for export have risen sharply. As a result, dollar-denominated pulp and paper exports have become unprofitable, further weighing on the local market.<\/p>\n<p data-start=\"3303\" data-end=\"3590\">Economist Denis Kondratyev of the Center for Systemic Solutions explained that the ruble\u2019s strength is reducing export appeal while increasing the cost of Russian goods abroad. At the same time, stronger imports\u2014even amid sanctions\u2014are crowding out local producers in certain categories.<\/p>\n<p data-start=\"3592\" data-end=\"3874\">\u201cRussia still supplies itself entirely with some items, such as hygiene products, which have not seen any decline in demand,\u201d Kondratyev said. \u201cBut other segments are suffering and need protection. A more protectionist policy may now be necessary to support domestic manufacturing.\u201d<\/p>","protected":false},"excerpt":{"rendered":"<p>Russia\u2019s forest products industry is facing a critical downturn, with sector leaders warning of potential shutdowns unless state authorities intervene. Currency fluctuations, reduced domestic demand, and limited export opportunities have combined to put many wood processing and pulp companies in &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/russian-timber-giants-in-jeopardy\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":83683,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-89070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Russian timber giants in jeopardy - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/russian-timber-giants-in-jeopardy\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Russian timber giants in jeopardy - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Russia\u2019s forest products industry is facing a critical downturn, with sector leaders warning of potential shutdowns unless state authorities intervene. 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