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Russia Explores Solutions the past two years in response to falling output, sliding prices

To Cope With Challenges In and soaring costs.
But the situation has continued to deteriorate, especially
Timber Industry within the export-heavy pulp and paper sector. Sanctions

imposed by the West in response to the war in Ukraine have
Russia’s wood industry faces shutdowns effectively cut off access to the European market, traditionally
Russia’s timber industry is warning of widespread production one of Russia’s largest buyers of timber products.
shutdowns as the sector reels from Western sanctions, declining At the same time, the strengthening ruble has made
demand and a surging ruble that has battered the country’s Russian exports less competitive abroad, further shrinking
export competitiveness, reported by Kommersant. revenue for producers already struggling to adjust to new
Industry data show that timber harvesting fell 13 percent in global trading conditions.
2024 compared with pre-war levels in 2021, lumber production “There is no market for products such as pellets, roundwood
dropped 11 percent and plywood output declined 23 percent. or wood chips, and lumber prices are in continual decline,”

Even pulp production, one of the sector’s more stable said Vladimir Butorin, CEO of one of the major industry players,
outputs, decreased by three percent. told Kommersant.
Major industry players have been restructuring loans over In addition to export woes, the industry is also confronting

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