UDC

338.12.017

Authors

Sushko Olga Petrovna
Institute of Economics and Management, Northern (Arctic) Federal University
named after M.V. Lomonosov (Arkhangelsk, Russia)

Abstract

Russia has 20.6 % of the total forest area in the world. In spite of its large forest and timber resources, in 2013 Russian timber industry accounted for only about 4 % of the world production. Among Russian industries, timber industry ranked eighth in terms of output in 2012, indicating a gradual reduction of its share in the Russian economy. The index trend and net financial result of the commercial production of timber are unstable. The domestic market of timber and paper products in Russia has low capacity, which is a negative side not so much of the timber and paper market itself as of the entire national economy. The plan is to increase domestic consumption of paper and cardboard up to 20 million tons by 2030. Besides, the dynamic development of export-oriented Russian timber industry is closely linked with the trends of global consumption and supply of paper and cardboard. However, successful integration with foreign markets, closer ties with international timber clusters and increased share of Russian timber exports on the global market can be achieved only upon solving acute problems within the domestic sector. The timber, woodworking and pulp and paper industries need to raise their profitability and production efficiency, reduce the marginal costs by producing more products with high added value. At present, however, low financial and economic potential as well as high industry risks do not contribute to investment attractiveness of the timber industry, modernization of the existing facilities and introduction of new competitive capacities. Only the expansion of production capacity of high-quality timber and paper products as well as the use of advanced technologies for complex timber processing can help Russian timber merchants break into the new segments of the global market, including the premium one. It is especially important in view of the high entry barriers and imperfect competition on the market, and in some segments – intense oligopolistic competition. Another way of promoting Russian forest products in the world economy is the introduction of modern bio- and environmental technology.

Keywords

Russian timber industry, export of timber, industrial production, world export, product profitability

References

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