Russian Timber Industry Needs USD 28.4 Billion over Next 12 Years

The investment requirement of the Russian timber industry has been set at USD 28.4 billion over the next 12 years, according to Deputy Russian Minister for Industry, Science and Technology Sergei Mitin, who spoke on Tuesday at the Timber Industry Forum in Saint Petersburg about plans for developing the timber industry by 2015.

The deputy minister said that there are already negotiations underway with major timber exporters (Finland, China and Japan) regarding the creation of deep processing timber factories in Russia. 'Either our foreign partners will find the financial resources to develop the Russian timber industry or the government will limit the supply of raw timber materials to these countries,' said Mr Mitin.

According to Mr Mitin, only USD 540 million was invested in the Russian timber industry in 2001. Only 5.3 million tonnes of paper and carton are produced in Russia every year whereas 86 million tonnes are produced in the USA and 9.2 million tonnes are produced in Finland. Russia's financial share on the world timber market is less than 3% (about USD 4 billion).