Russian forest industry revenue increased by 6.5% to €18.46 billion in 2012

Russian forest industry earned 733.6 billion Rubles (€18.46 billion) in 2012, which is 6.5% higher than in 2011, as said in the annual report published by WhatWood analytic department. Sales profit amounted to 52.88 billion Rubles, which is 16.3% lower year-on-year.

Source: State Statistic Service (Rosstat)

In 2012, Russian economy grew twice as slower as in 2000-2008. Economic growth slowed down due to declining demand on Russian export goods, which was in turn caused by global economy downturn, cut of company inventories by the end of the year and crop failure after dry season. Russian GDP amounted to 62.36 trillion Rubles (€1.57 trillion) in 2012.

Federal Forestry Agency (Rosleskhoz) gave much attention to forest renewal matters. Volume of reforestation in the last five years stabilized on the level of 810-860 thousand hectares. Share of artifical reforestation amounted to 22%.

On August 22, 2012, Protocol on Russia’s accession to WTO came into power. According to the protocol, new quotas on roundwood export from Russia were imposed. Under 4.13 million cu m, duties for spruce, fir and pine logs now make up 13% of the customs value. For exporting roundwood over this volume duty increases up to 80%, but not less than €55.2 per cubic meter. Quotas are not imposed for birch and aspen logs, export duties for these grades will stay at 7% and 5% respectively.

Following the results of 2012, Top priority project investment list incudes 121 projects with total volume of investments at 403.7 billion Rubles. These projects are being implemented in 35 Russian regions.

Logging volume in 2012 amounted to 192.1 million cubic meters, which is 2.5% lower on-year.

China remained the largest exporter of Russian logs, but since 2007 export is constantly falling. Last year, export fell by 22.8% down to 11.5 million cu m.

Lumber production in Russia made up 30.8 million cu m, 2.7% lower on 2011. Export of lumber also declined by 2.6% down to 19.1 million cu m.

Pulp output stayed at 2011 levels. Production dynamics through the year, however, was varied: in Q2 there was decline by 2.9% to Q1, in Q3 – growth by 5.1% to Q2, in Q4 – decline by 4% to Q3.

Paper production declined by 1.5% down to 4.7 million tons, with newsprint production falling by 5.8% to 1.81 million tons. Board production, however, grew by 5.2% to 2.95 million tons.

Detailed statistics on volumes and prices, analysis of WTO accession, comments of market players, major legislation changes and key events of the year are available in the annual study of WhatWood analysts.