Russian exports of lumber and rough wood fell sharply in 2023 due to sanctions caused by the Russian invasion of Ukraine.
Russian invasion of Ukraine
Average price of lumber lost 30%.
Ponsse’s export and service operations in Russia have been suspended since March 2022.
The deal should be completed by the end of this year.
Along with the closing of the transaction, the company completed its almost thirty-year history of investments in Russia.
Russia currently faces an excess of approximately 600 thousand tons of corrugated cardboard, and this surplus is expected to reach a total of 1 million tons.
Some unscrupulous traders falsely declare the origin of the wood as Kazakhstan or Kyrgyzstan when it actually comes from Belarus. EPAL does not have licensees in these countries.
The total log import volume to Finland and Sweden was just over 8 million m3 last year compared to an average of almost 16 million m3 annually throughout the previous decade.
The organization advised its members to exercise caution when encountering offers of birch plywood labeled as "from the Far East" or originating from countries like Turkey, Kazakhstan, or Kyrgyzstan.
Essity has signed an agreement with a buyer and the transaction has now been approved by the Russian authorities.
The Left Bank of the Dnieper River in the Kherson region is covered with pine forests. The fertile layer of forests and young plantations could be literally swept away by the water flow.
Mondi's Board remains committed to divesting the Syktyvkar plant and its affiliated entities. Alternative divestment options will be explored to carry out the sale.
Russia completely lost the European plywood market due to the EU sanctions.
The forest industry’s foreign trade was affected especially by Russia’s invasion of Ukraine and its economic impact last year. The volume of wood imports dropped to 5.5 million m3, decreasing by more than a half from the previous year.
Now that the business in Russia has been separated out, Kronospan is in discussions with the local management team to stop the use of the Kronospan name in Russia.
In Russia, UPM owned the Chudovo plywood mill in the Novgorod region. Chudovo produces birch plywood for construction, transport engineering and gas tankers. In 2021, the plant's revenue reached 8.2 billion rubles (about $105 million).
UPM has completed withdrawal of its businesses from Russia by selling all its Russian operations, including the Chudovo plywood mill, to Gungnir Wooden Products Trading. The parties have agreed not to disclose the details of the transaction.
FSC International has decided that forest certification in Russia is no longer possible. All Russian FSC certificates will be canceled, including forest management certificates.
The Russian government intends to allocate 20 billion rubles in 2023-2024 to convert municipal boilers from fossil fuels to wood pellets, but these funds will not be enough.