Roundwood exports: who buys and how much is exported from Russia?

Roundwood: The Paradox and Transformation of Russia's Timber Industry

It’s Not Just Roundwood: The Story of Russia’s Logs and Lumber

When we talk about raw resources, Russia’s forests often take center stage. And when it comes to timber exports, the focus isn’t just on the term roundwood—it’s about logs in their most raw and powerful form. These logs, hewn directly from Russia’s vast forests, represent both opportunity and controversy in equal measure.

In this article, we explore why log exports have become such a critical topic in Russia’s resource economy and why this shift signals more than just a trend—it’s a story of transformation.

Logs in Numbers: The Reality of Russia’s Timber Exports

Logs are more than just a commodity; they’re a symbol of Russia’s forest wealth. Data from Rosleskhoz in 2024 shows:

A significant 11% decrease in the export of unprocessed timber compared to 2023.

EAEU exports include:

• Armenia: 618.2 m³
• Belarus: 875.4 m³
• Kazakhstan: 167,500 m³
• Kyrgyzstan: 4,590 m³

This drop is noteworthy, but it only scratches the surface. While domestic processing appears to be gaining momentum, a closer look reveals gaps in data about exports to non-EAEU countries, hinting at persistent transparency issues in the logging industry.

Why Are Logs Exported?

The allure of exporting raw logs lies in its simplicity:

• Immediate revenue: Exporting raw timber bypasses the need for processing facilities.
• Lower upfront costs: There’s no need for investment in equipment or labor to process the wood.
• Ease of trade: Raw logs have fewer specifications to meet compared to finished products.

Yet this simplicity comes at a cost. By exporting logs instead of processing them, Russia forfeits:

• Added value: Finished wood products command significantly higher prices.
  
• Job creation: A robust processing sector could employ thousands across rural regions.
• Global competitiveness: Finished products showcase technological expertise and innovation.

Logs vs. Lumber: A National Debate

The debate between exporting logs and developing a domestic lumber industry has raged for years. Advocates for local processing argue that Russia’s vast forests should power a value-added economy, not just raw material exports. But achieving this vision requires:

• Heavy investments in processing plants.
• Technological upgrades to meet international standards.
• Sustainable logging practices to preserve forest resources for future generations.

The transportation of round timber to EAEU countries is governed by the same rules as within Russia. Exporting timber requires an electronic accompanying document (EAD), which allows for full tracking of the timber's journey from its point of origin to its destination. Moreover, the system strictly enforces volume limits: exceeding the permissible export quantity is impossible, as the document's issuance will be automatically blocked.

REFERENCE

Russian Government Decree No. 380 dated March 16, 2022.

The Eurasian Economic Union (EAEU) is an international organization for regional economic integration, established by the Treaty on the Eurasian Economic Union. The union comprises five member states: Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.

Vladimir Putin on Logs: A Call for Action

President Vladimir Putin’s critique of log exports underscores the paradox of Russia’s timber trade. His comment, “We export logs but import cardboard boxes,” is a sharp reminder of how raw material exports undermine economic potential.

Putin’s statement has inspired efforts to redirect focus toward processing within Russia, where the logs can be transformed into engineered wood, furniture, or building materials that fetch premium prices on global markets.

Challenges in Processing Logs Domestically

Turning logs into high-value products isn’t as straightforward as it seems. The challenges include:

1. Outdated Equipment

Many processing plants still operate with aging machinery, limiting their ability to produce competitive products.

2. Infrastructure Gaps

Remote logging sites lack the transportation networks needed to move timber efficiently to processing facilities.

3. Illegal Logging

Unchecked illegal logging diverts resources from legitimate businesses and undermines efforts to establish sustainable practices.

4. Market Disruption

Global markets often favor cheap, raw materials over costlier finished goods, creating an uphill battle for Russian producers.

Opportunities for Transformation

Despite these hurdles, there is growing momentum to shift away from raw log exports. Key opportunities include:

1. Modernizing Sawmills

Investing in state-of-the-art sawmills will enable Russia to produce premium lumber for domestic and export markets.

2. Focusing on Niche Products

Creating specialized wood products, such as thermally treated logs or laminated timber, can open up new markets.

3. Expanding Certification

Adopting sustainability certifications, such as FSC or PEFC, can increase Russia’s appeal to eco-conscious buyers.

4. Strengthening Regulation

Cracking down on illegal logging and enforcing transparent trade practices will build trust in Russian timber exports.

Logs and Beyond: The Future of Russia’s Timber Economy

As we look to the future, the question is clear: Will Russia continue to export raw logs, or will it seize the opportunity to become a leader in processed timber products? The answer lies in a combination of policy changes, investment strategies, and commitment to sustainability.

The story of Russian logs isn’t just about economics—it’s about potential. By choosing to process its timber domestically, Russia can redefine its role on the global stage, transitioning from a supplier of raw resources to a powerhouse of innovation and craftsmanship.