Status Quo Analyses And Problem Identification Of Russian Exportation Of Timber To China

Since 2001,China has been the largest consumer of Russian timber.Despite numerous attempts of the Russian government to promote production and exportation of high value-added forest products,unprocessed roundwood and low-processed sawnwood remain the two largest components of Russian timber exports to China.This study aims to analyze the current state of Russian timber exports to China and identify the problems existing in the Russian forestry sector,which negatively affect the competiveness of Russian timber exports in the Chinese market.The analysis shows that timber exports from Russia to China have been rapidly growing since 2015,primarily due to a dramatic devaluation of the Russian currency started in 2014.Russia’s dependency on the Chinese timber market has substantially grown recently,increasing the market power of Chinese timber importers and hindering a sustainable development of the Russian wood-processing sector.Based on the latest statistical data compiled by the customs authorities of Russia and China,the analysis shows that the Russian tariff policy regarding timber exports lacks consistency and only slightly contribute to the composition change of Russian timber exports to China.A widespread illegal logging on the Russian territory harms the national interests of Russia,but benefits the Chinese timber importers.Aging logistics infrastructure undermines the competitiveness of Russian timber products in the Chinese market,as export prices and delivery time rise.A set of policy recommendations on how to make Russian timber exports to China sustainable and beneficial for both countries is presented.