After the implementation of the EU sanctions, the export of Russian timber products declined sharply, which is not surprising for all parties in the market. However, up to now, Russian domestic timber enterprises are still unable to cope with new challenges, and the domestic market situation is not optimistic.

From the perspective of domestic railway traffic in Russia alone, during the period from January to September 2022, the railway container traffic increased by 0.5% year on year, and 4.8 million TEUs were transported in the first nine months. At the same time, the transportation volume of wood and wood products decreased by 1.7% to 445600 TEUs.

The Russian timber market is still trying to adapt to foreign trade and financial restrictions. So far, quite a few woodworking enterprises have not found new suppliers and solutions to their logistics problems. According to statistics of relevant institutions, the average capacity utilization rate of Russian timber enterprises in October 2022 is only 30-40%.

In fact, most Russian timber enterprises are on the verge of losing money. Exporters hope to obtain a large amount of transportation subsidies to finally maintain the minimum production profitability.