VLP Group: timber harvest in the Vologda Region dropped by a third in Q2 – Q3 2022

The timber harvesting volume in the Vologda Region reduced by exactly one third in Q2 and Q3 2022 compared to the same period last year, as reported by Alexander Churkin, Chairman of the Board, Vologodskiye Lesopromyshlenniki (VLP) Group, at a press conference devoted to the company’s birthday.  The Group comments that the situation may exacerbate further, as harvesting can plummet by 50%, which will entail lower timber processing output and companies going bankrupt and laying off workers.

According to expert calculations by VLP Group, the tax revenue alone paid by timber enterprises to budgets at all levels in this region will reduce by 4 times next year, or by almost 5 billion rubles. Not all timber enterprises will survive 2023 without effective support measures.