The Government of the Russian Federation has extended restrictions on the export of some types of timber products. According to the Government press office, the increased export tariffs for sawn goods and squared beams made from coniferous timber, oak, beech, and ash tree have been extended by another three years until December 31, 2028.
Russia first introduced restrictions for timber products export in 2022. The goal is to preserve raw material for the domestic wood-processing sector and channel it toward higher-value products. Sanctions had already limited Russian timber exports to European markets; the restrictions push the remaining volumes toward domestic use.
As the country with the largest forest area in the world, Russia is historically an important player in the international timber market. Coniferous trees (larch, spruce, pine) are key raw materials for construction. Oak, beech, and ash are preferred hardwoods for furniture and parquet industries. Extending export restrictions will accelerate Russian forest products exporters' pivot to Asian markets (China, Japan, South Korea). In the domestic market, timber prices are expected to fall and investment in wood-processing industries to rise. The Russian government's 2030 forest sector strategy aims to raise the export share of value-added products to 70 per cent.
Key Takeaways:
1. Russia extended timber export restrictions until December 31, 2028.
2. Scope: sawn goods and squared beams from coniferous, oak, beech, and ash.
3. Russia first introduced the restrictions in 2022.
4. The goal is to preserve raw material for domestic wood-processing and channel it to value-added products.
5. Exporters are expected to pivot to Asian markets (China, Japan, South Korea).
