Finnish timber merchants invest 1.5 billion euros in Russia – the association

Finnish forestry cluster companies, which form about 4.5% of national GDP, have invested 1.5 billion euros in the development of their Russian enterprises, providing employment for more than 3 thousand Russians, Timo Jaatinen, Executive Director of the Finnish Timber Industry Association, said at a meeting with the Russian trade representative in Finland Anton Loginov.

“Finnish companies have invested 1.5 billion euros in the development of their activities in Russia and employ more than 3 thousand people in their industries. In addition, the member companies of the association annually build about 100 kilometers of forest roads and provide their competencies in the field of forest management and reforestation, ”said Jaatinen, quoted in the message of the trade mission.

The parties noted the particular importance of maintaining a constructive dialogue between the countries on issues related to the timber industry, ensuring reliable and stable supplies of timber, the possibility of further expanding the activities of Finnish enterprises, deepening localization, as well as the prospects for participation in Russian projects.

The sales representative informed about the project for the construction of a modern biochemical production facility of OOO Taiga Boguchany in the Krasnoyarsk Territory with a capacity of over 1 million tons of bleached softwood sulphate pulp.

“Our business has been successfully cooperating in the forest industry for a long time, but the export of unprocessed wood is becoming obsolete, the time has come to deepen processing, to produce final products closer to a potential consumer, including in Asian markets. For this, all the necessary infrastructure has been created in Russia, federal and regional support measures are available, “Loginov noted, the quote is given in the message.

Finland’s timber industry cluster forms about 4.5% of the national GDP. At the end of 2020, the sector’s share in the total industrial production was 19.5%, and the share in exports was 18.1% (18.7% at the end of the first quarter of 2021).

According to the Luke Institute for Natural Resources, Russia’s share in Finland’s roundwood imports is traditionally over 70% (in January-May 2021 – 71%). The main categories of products supplied are: birch pulpwood, coniferous chips and hardwood chips. In value terms, Russian exports in the first three months of 2021 increased by 20.9% to USD 157.5 million, mainly due to an increase in the supply of wood and wood products by USD 27.8 million (+ 23.2% ). Imports of lumber from Russia, according to the Finnish Timber Industry Association, have remained unchanged since 2019 – 0.5 million cubic meters annually.