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Russia’s ban on the supply of unprocessed timber abroad will encourage Chinese businessmen to open timber processing plants in Russia.

This is the opinion of Ekaterina Novikova, associate professor in the Economic Theory Department of Plekhanov University of Economics, Russia.

As Timber Industry News informed earlier, Russian President Vladimir Putin instructed the Russian government to ban the export of unprocessed timber from January 1, 2022. Namely softwood and some hardwood species.

The expert said in an interview for the Russian media that the issue of the need for a ban had long been discussed in Russia. “This is a correct ban,” Novikova expressed her opinion. “Until recently, Russia exported timber to other countries as a natural raw material for the production of finished products. Thus, within the global value chain, Russia has established itself as a supplier of resources with the lowest added value.”

“The volume of wood processing in Russia is growing every year, which means that the amount of finished products sold to other countries is also increasing: the profit from the production and sale of products is increasing,” Novikova said. In addition, investors in other countries understand that cheap raw materials can be used in our country, so the number of processing plants will increase. “

The expert noted that the implementation of the President’s initiative will entail an increase in the number of foreign companies opening wood processing enterprises in Russia, including Chinese ones.

The post Chinese investors to open processing plants in Russia due to timber export ban appeared first on Timber Industry News.