Prohibition Of Log Exports To The Russian Local Market And Price Cuts May Be Coming

Jan 14, 2022

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From January 1, 2022, Russia will ban the export of unprocessed logs. The Ministry of Industry and Trade of the Russian Federation expects that Russian industry will be able to process all the wood that remains in the country, and Deputy Minister Viktor Yevtukhov said restrictions on exports will allow Russia to process an additional 6 million cubic meters of softwood timber, and make it cheaper.


Yevtukhov: "From January 1st, the export of unprocessed softwood and precious hardwood (oak, beech, ash) will only be possible through two railway checkpoints - the Люття checkpoint (with border with Finland) and Хасан checkpoint (border with North Korea). This will allow up to 6 million cubic meters of softwood to remain on the domestic market and of course also be processed by domestic companies, which will increase the number of products on the domestic market and bode well for prices decline".


Earlier, the Minister of Industry and Trade of the Russian Federation, Denis Manturov, said that the Russian forest industry was ready for the ban. In the past 10 years, the export volume of Russian logs has decreased from 49 million cubic meters to 16 million cubic meters, which is 1/3 of the original, and the export volume of completely unprocessed wood accounts for 7%. Manturov believes that wood that has not yet been exported can also be used to build wooden houses.

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