The forestry industry maintains a stable share in Russia's GDP

The forestry industry maintains a stable share in Russia's GDP

    Anton Alikhanov, Minister of Industry and Trade of the Russian Federation, speaking at a joint meeting of the Ministry of Industry and Trade of Russia and the Council of the Union of Timber Producers and Exporters of Russia, summed up the work of the industry in 2025 and outlined key areas of government support. Despite external pressure and structural changes, the timber industry (LPC) is demonstrating resilience, and the industry's share in the country's GDP remains stable.

2025 results: increased shipments, taxes, and investments

    Anton Alikhanov provided specific figures describing the state of the forestry industry by the end of 2025. All key indicators show positive dynamics.

"We have formed proposals for further adjustment of regulatory mechanisms, support for enterprises and building logistics chains. We hope that our initiatives will be supported" — Anton Alikhanov, Minister of Industry and Trade of the Russian Federation

    The investment growth of more than 10% is a particularly important signal, indicating that the business retains confidence in the long—term prospects of the industry and continues to invest in capacity development.

Support for forestry engineering: a roadmap is on the way

    One of the key topics of the meeting was the development of the domestic logging machinery industry. In the context of sanctions restrictions and the withdrawal of foreign manufacturers from the Russian market, the issue of technological independence is of critical importance.

    Anton Alikhanov said that the Ministry of Industry and Trade is actively cooperating with large enterprises, the Union of Timber Producers and the Federal Forestry Agency on the issue of developing the production of logging machines: "We are currently coordinating a roadmap for expanding the production of such equipment."

Tools to stimulate demand for domestic forestry machinery:

    The Ministry of Industry and Trade has maintained all demand stimulation programs, which allows industry enterprises to plan the renewal of their fleet of vehicles on more favorable terms.

Financial support for enterprises: subsidies and preferential loans

    In 2025, the government provided substantial financial support to the timber industry in two key areas:

• - Transport subsidies: 70 enterprises received 2.3 billion rubles to compensate for logistical costs. This is especially important in the context of the reorientation of export flows from the west to the east, where the transport shoulder is much longer.
• - Preferential loans from the Industrial Development Fund (EDF): 10 projects totaling 2.3 billion rubles were supported. FRP, coordinated by VEB.The Russian Federation, on behalf of the Ministry of Industry and Trade, provides enterprises with affordable financing for modernization and expansion of production.
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Priority investment projects: new facilities and preferential logging

    The Mechanism of Priority Investment Projects (PIP) remains one of the key tools for stimulating investment in the forestry industry. The essence of the mechanism is that enterprises investing in the creation of new timber processing facilities gain access to a preferential settlement area.

- Results of the 2025 PIP: 6 projects have been completed with a total declared investment of 34.8 billion rubles and an estimated cutting area of 4.1 million m3.

- New projects:

• 2025: 4 new priority projects launched.
• 2026 (already connected): There are 2 more projects with a total investment of about 22 billion rubles and an estimated cutting area of 1.7 million m3.

    These figures indicate the continued investment activity in the industry, despite all external challenges.

Key indicators of state support for LPC in 2025:

Importance for the timber industry

    Anton Alikhanov's statement and the data presented allow us to draw several key conclusions about the state and prospects of the Russian LPC:

1. - The industry has adapted: The stability of the share of the forestry industry in GDP against the background of a radical restructuring of logistics and export flows (from West to East and South) indicates successful adaptation.
2. - Government support is systematic: the Ministry of Industry and Trade maintains and expands a range of support measures, from transport subsidies to preferential leasing and priority investment projects.
3. - Technological sovereignty is a priority: Agreeing on a roadmap for the production of logging equipment is an important step towards reducing dependence on imports in a critically important segment.
4. - Investments are growing: The growth of investments by more than 10% is a positive signal indicating that the business sees prospects and is ready to invest in development.
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The prospects

    In 2026, the government will continue to implement a set of measures to support the forestry industry. Key areas that market participants should keep an eye on:

•     - Implementation of the roadmap for logging machinery and the emergence of new models of domestic machinery.
•     - Expansion of the preferential leasing program and an increase in the number of enterprises using this mechanism.
• New priority investment projects, especially in the regions of Siberia and the Far East, focused on exports to Asia.

    The stability of the timber industry in the face of turbulence is an achievement made possible by the joint efforts of business and the state. The goal for 2026 is not only to maintain, but also to strengthen this stability, creating the basis for a new stage of growth.

Tags: #Russia #Ministry of Industry and Trade #Anton_alikhanov #LPK #forestry #state support #investments #PIP #logging equipment #FRP