Up to 50% of Russia\u2019s forest companies could shut by the end of 2026 as lower export prices, rising transport costs and a strong rouble push producers deeper into losses.<\/p>\n
Regional lawmakers have asked Denis Manturov to approve a three-year moratorium on creditor-initiated insolvency proceedings, alongside tax deferrals and a suspension of debt collection for liabilities accumulated by January 1, 2026, according to a draft letter cited by Kommersant. Manturov is Russia\u2019s first deputy prime minister overseeing industry.<\/p>\n
The draft, prepared by a committee of the Arkhangelsk regional assembly, warns that even large companies have exhausted financial reserves, are operating at a loss and are beginning to miss tax and other mandatory payments. Total sector losses over the past three years exceed 15 billion roubles (approximately \u20ac150 million).<\/p>\n
State support has also been sharply reduced. Compensation for forest export costs is set to fall from 7.6 billion roubles (\u20ac76 million) in 2023 to 550 million roubles (\u20ac5.5 million) in 2026, while subsidies for sea shipments from northwestern ports have been completely discontinued.<\/p>\n
The pressure follows the loss of the European market after sanctions imposed over Moscow\u2019s invasion of Ukraine. At the same time, demand in China, now the main outlet for Russian lumber, remains weak due to the prolonged property downturn. China\u2019s real estate investment fell 11% year on year in January\u2013February 2026, sales of newly built commercial housing by floor area dropped 14%, and housing starts fell 23%, according to official data.<\/p>\n
Russia is also losing ground in China\u2019s softwood lumber market. Its share of imports fell by 5.7 percentage points year on year, while Canada increased its share by 2.9 points, Sweden by 2.6 points and Finland by 2.5 points.<\/p>\n
Producers including Segezha Group, ULK Group, Titan Group and Lesozavod-25 are among those facing the most pressure in the northwestern region.<\/p>\n
Vladimir Butorin said the forest industry has \u201creached the bottom\u201d, warning that logistics costs have more than doubled. The cost of transporting lumber rose to $70 per m\u00b3 from $30 per m\u00b3 in 2025, adding 2.4 billion roubles (\u20ac24 million) to ULK\u2019s expenses. He also said overdue tax payments incur a 20% penalty, with enforcement adding another 12%, further straining companies already under financial pressure.<\/p>\n
Nikolai Ivanov said the issues raised by Arkhangelsk lawmakers are critical for all forest regions. He proposed freezing changes to forest lease payment formulas for three years, blocking lease terminations linked to incomplete forest conservation work in 2022\u20132025, and banning any increase in timber export duties or the introduction of new levies in 2026.<\/p>\n
Additional proposals include reinstating subsidies for export shipments and introducing a 0.9 reduction coefficient on railway tariffs for forest products in 2026\u20132027.<\/p>\n
The letter also calls for a three-year deferral of tax arrears and other mandatory payments, with repayment in instalments, and a suspension of enforcement measures on tax debts accumulated as of January 1, 2026.<\/p>\n
The Ministry of Industry and Trade declined to comment. However, the situation was discussed at a recent meeting with Anton Alikhanov, where authorities acknowledged the need to support companies facing acute financial strain, according to sources cited by Kommersant.<\/p>\n
Separate data underline the downturn. Russia\u2019s sawn timber production fell 18.4% year on year in January to 6.36 million m\u00b3, after a 15% decline in December. Officials have warned that output could fall by 20% to 30% in 2026.<\/p>\n
Exports have also weakened sharply, with total export value down more than 20% since 2021, from $12.5 billion (\u20ac11.5 billion) to $9.8 billion (\u20ac9.0 billion). The loss of the European market, previously worth more than $3 billion (\u20ac2.8 billion) annually, has yet to be offset, while domestic demand remains subdued amid a weakening housing market.<\/p>\n
Against this backdrop, companies such as Segezha Group are expanding in China, including plans to build a manufacturing and logistics hub in Shanghai\u2019s Lingang Special Economic Zone, as producers seek alternative markets in a shifting global lumber trade.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98416,"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-98415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n