Timber producers ask the Ministry of Industry and Trade for a three-year moratorium on bankruptcy

Timber producers ask the Ministry of Industry and Trade for a three-year moratorium on bankruptcy

    Russian timber companies have asked First Deputy Prime Minister Denis Manturov to impose a three-year moratorium on bankruptcy in the industry. The crisis caused by falling global prices, rising logistical costs and a sharp reduction in government support has put many enterprises on the brink of survival. The total losses of the sector over the past three years have exceeded 15 billion rubles.

Critical depletion of the safety margin

    The draft letter prepared by the committee of the Legislative Assembly of the Arkhangelsk Region and submitted to the Regional Duma contains alarming statistics. In three years, the total losses of the forestry industry exceeded 15 billion rubles. Many enterprises are already unable to meet their tax obligations and are starting to incur arrears in taxes and other mandatory payments.

    The share of unprofitable enterprises in the Russian forest industry reached 45% against 40% in 2024. By the end of 2025, the loss of companies in the forestry and logging sector amounted to 2.2 billion rubles (against a total profit of 3.2 billion rubles in 2024).

Reduction of state support: from 7.6 billion to 550 million rubles

    The situation is aggravated by a sharp reduction in government support. The volume of export subsidies in 2026 decreased to 550 million rubles, while in 2023 7.6 billion rubles were allocated to compensate for the costs of exporting timber products.

    Subsidizing of sea shipments from the ports of the North-West has been completely stopped — this is a direct blow to enterprises focused on exporting through the Baltic ports. At the same time, the total budget for subsidizing export logistics, according to the Ministry of Industry and Trade, in 2026 is 2.46 billion rubles, of which the timber industry accounts for 25% (about 615 million rubles). However, these funds are distributed through competitive selection, and access to them is limited for many enterprises.

Increase in logistics costs: from $30 to $70 per cubic meter

    Additional factors of pressure on business were the fall in world prices for wood, the strengthening of the ruble and a twofold increase in the cost of logistics. ULK Group owner Vladimir Butorin noted:

"If in 2025 the average cost of transporting lumber was $30 per cubic meter, now it is already $70 per cubic meter. Because of this, ULK's logistics costs increased by 2.4 billion rubles" ‑ Vladimir Butorin, owner of ULK Group

    Butorin predicts that by the end of 2026, 50% of enterprises in the timber industry, including large companies, may close.

    Changing logistics chains also creates additional problems. When transporting timber by several modes of transport, timber exporters have to organize several wood storage sites, enter information on the movement of wood in each place into the Forest Management System, and form and terminate electronic accompanying documents. All this incurs additional financial and time costs.

What measures are proposed by the timber industry

    In order not to "finish off" the industry with fines and penalties, the authors of the appeal propose a set of protective measures.:

    It is proposed to extend support measures to backbone enterprises, subject to the development of financial recovery programs and coordination of the plan with the authorities of the region.

Additional initiatives of Segezha Group

    Nikolai Ivanov, Vice President of Segezha Group, called the issues raised by the Arkhangelsk deputies "critically important and relevant for all forest regions of Russia." According to him, other measures can help to stabilize the situation.:

1.     - A moratorium on changing approaches to calculating rent for the use of forests for three years.
2.     - A ban on the termination of lease agreements in case of incomplete implementation of forest conservation measures in 2022-2025.
3.     - A ban on the increase in export duties on wood products in 2026 and the introduction of new export duties.
4.     - Refund of subsidies for export shipments through ports.
5.     - Setting a 0.9 reduction factor for the railway tariff for forestry products for 2026-2027.
6.  

Government reaction

    The Ministry of Industry and Trade did not provide an official comment. However, according to Kommersant's sources, at the last meeting with the head of the ministry, Anton Alikhanov, the difficult situation in the industry was discussed, and the authorities recognized the need for support measures for individual enterprises in a critical situation. Other interlocutors of the publication believe that companies can meet halfway on a number of points in order to prevent mass bankruptcy.

    At the end of March 2026, it became known that the Russian government as a whole is considering the possibility of introducing a moratorium on bankruptcy for the affected industries. However, the final parameters of such a measure have not yet been determined.

Key indicators of the crisis:

Importance for the industry

    The crisis in the forestry industry is systemic and requires an integrated approach from the government. Key issues that need to be addressed:

1. - Restoration of export subsidies — without them, enterprises cannot compete with suppliers from other countries in the markets of China and the Middle East.
2. - Stabilization of logistics costs — a twofold increase in the cost of transportation makes exports unprofitable.
3. - Revision of tax and rental policies — additional financial burdens in a crisis can lead to the collapse of the industry.
4. - Reducing the bureaucratic burden — excessive requirements of LesEGAIS and other control systems increase costs and slow down work.
5. - Development of the domestic market — stimulating demand for timber within the country could partially compensate for losses in export directions.
6.  

The prospects

    The issue of imposing a moratorium on bankruptcy and other support measures will be decided at the federal level in the coming weeks. For the timber industry, this is a matter of survival. As Vladimir Butorin noted, "there is nowhere else to fall." It remains to be hoped that the government will hear the industry's signals and propose effective stabilization mechanisms to prevent mass closures and job losses in Russia's forest regions.

Tags: #Timber industrialists #Ministry of Industry and Trade #moratory_bankrotstvo #crisis #export subsidies #logistics #segezha_group #ULK #North-West #forestry industry