A drop from a US$311 million profit in 2021 to a $142 million loss by 2024 has left about half of all forestry firms unprofitable and dozens facing bankruptcy, as exports collapse across China, Japan and South Korea.
About half of all forestry companies were loss-making last year, the study found, with revenue falling, reserves depleted, and high interest rates effectively closing off access to new financing. Within that, smaller producers carry the heaviest exposure, holding the thinnest reserves and the least room to absorb costs that keep climbing as their order books shrink.
Sawn-timber shipments to China falling 30 per cent year on year to 2.6 million cubic metres in the first four months of 2026. Export revenue from that trade dropped 26 per cent to $603.7 million over the same period, according to the Vedomosti business daily, citing data from Lesprom Network. Driving the China slump is a property downturn that shows little sign of easing, with home sales by value down 9.5 per cent in 2025 to their weakest level since 2009.
Russia has passed a law that effectively allows large-scale logging in the environmental protection zone around Lake Baikal – one of the world’s most valuable ecosystems.The document takes effect on March 1, 2026 and is officially described as the “Baikal Preservation Law.” According to intelligence, its main aim is to create a cover for large-scale industrial logging with a predominant focus on supplying timber to China.
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