Russian Timber Journal 04-2018: In 2017, the production of plywood in Russia reduced for the first time in 9 years, VEB once again confirmed plans to invest into pulp production in the Krasnoyarsk region, Accounts Chamber of Russia found violations in exports of forest products on $210 million

In 2017, the plywood production volume in Russia reduced for the first time since 2009 by 2.2% (YoY) to 3.7 million m3. The main reason for the decline in production: deficit of wood raw materials caused by failure to fulfill supply plans due to weather conditions in summer-fall timber harvesting season. Export sales in 2017 showed a minimum growth rate for the last 6 years: +0.5% (YoY) to 2.47 million m3. Sales to the domestic market decreased by 3.25% (YoY) to 1.26 million m3.

At the Krasnoyarsk Economic Forum, held on April 12-14, 2018, Petr Zolotarev, Deputy Chairman and Member of the Board of Vnesheconombank (VEB) State Corporation, noted that the bank is ready to consider the projects included in the development program of the Yenisei Siberia macro-region. “The project of the construction of the Boguchansky pulpmill at the site of Kraslesinvest was included into the Yenisei Siberia project portfolio”.

In April 2018, the Accounts Chamber of Russia prepared a report on the results of the Organization Audit of Customs Control and Compliance with Customs and Tariff Regulation Measures for the Forest and Timber Export, Correctness of Calculation and Completeness of Customs Payment in 2015–2017. The total amount of violations identified by the audit amounted to 13.1 billion rubles. The objects of verification were Federal Customs Service of Russia, Customs of the Irkutsk region, Customs of the Republic of Karelia, Ministry of Economic Development.

On March 21, 2018 deputies of the State Duma adopted on the first reading a draft law on the exemption from income tax on the sale of waste paper. The organization that receives waste paper from the population pays citizens money that, according to the Tax Code, is subject to income tax. However, in practice, there is no tax revenue from the collection of income tax from the sale of waste paper, the explanatory note to the draft law says.

Reducing plywood consumption in Russia, actual wood pulp greenfield-projects in Russia, the ban on the import of wood waste to China and the “trade war” between the US and China – read in the latest issue of the analytical Journal of Russian Timber Journal №04-2018.