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In 2007, some noteworthy modifications took place in the Russian forest sector. Almost at the same time as the new Forest Code came into effect, a decree supporting prioritised investments in the forest sector and another decree aimed at ending the export of roundwood through the raising of export duties were also implemented. The purpose of the aforementioned documents was to promote the massive restructuring of the forest sector, in which the promoter was supposed to be forest industrial clusters in particular around pulp and paper production. These industrial clusters were intended to be able to meet the challenges of the new forest legislation, in terms of wood harvesting and the production of value added products. The reformation of the Russian forest sector did not begin favourably in 2008-2012, as all of the essential indicators showed that the situation in both forestry and the forest industry had continued to weaken since the year 2007. 120 priority investment ventures had been officially approved by the beginning of 2013, of which 27 have been completed or started. At this point, it is evident that the great majority of these undertakings will not come to fruition in line with the original goals. The successful development of the forest sector in Russia will require a more predictable legislative environment and liberalisation of the domestic market from protectionist custody.

The Effect of Forest Policy on the Use of Forest Resources and Forest Industry Investments in Russia