Russian Timber Journal №09-2018: new Strategy for the Development of the Forest Industry of the Russian Federation until 2030, investments in fixed assets of Russian timber industry companies increased by 55% in 1 H 2018

The government approved the Strategy for the Development of the Forest Industry of the Russian Federation until 2030

By the decree No. 1989-r dated September 20, 2018, the Government of the Russian Federation approved the Strategy for the Development of the Forest Industry of the Russian Federation until 2030 (hereinafter referred to as Strategy-2030). The strategy is aimed at increasing the long-term competitiveness of the forest industry, increasing the contribution of the forest industry to the social and economic development of the country, effective use, preservation, protection and reproduction of forests through achieving the sustainable forest management.

The previous Strategy-2020 was adopted in 2008, and, in fact, the main targets have not been achieved. The new Strategy-2030 does not provide a detailed analysis of the reasons for the failure. However, the authors of Strategy-2020 explain that it was adopted at the boundary of two radically different periods of Russian economy development:

— 2000-2008: a period of dynamic growth in production and welfare of the Russian population;

— 2008-2016: a period that has become much more difficult due to the global financial crisis of 2008–2009, the decline in oil prices in 2014–2015 and the resulting slowdown of the Russian economy growth, as well as the restrictive measures introduced by a number of foreign countries against Russia.

In the first half of 2018, investments in fixed assets of Russian timber industry companies increased by 55%

Rosstat data show an intensive growth in value of investment in the forest industry in the first half of 2018. The largest volume of investments was recorded in the pulp and paper industry segment: investments in paper production enterprises grew by 91% YoY to 12 billion rubles, investments in paperboard production enterprises quadrupled to 8.4 billion rubles. The leaders are: the Arkhangelsk region (Arkhangelsky PPM), the Penza region (Mayak JSC), the Republic of Komi (Mondi SLPK, STG), etc.

About the indicators of the development of the forest industry and the forecast up to 2030, about investments in fixed assets of Russian timber industry companies in 1H 2018 and prices for logs, birch veneer logs, pulpwood, plywood, wood-based panels and pulp-and-paper products — read in the latest issue of the analytical Journal of Russian Timber Journal №09-2018.