Russia will completely ban the export of logs. Wha

Russia will completely ban the export of logs. How will Chinese timber mills develop

release date: Source: China wood industry information

from January 1, 2022, Russia will completely ban the export of unprocessed coniferous logs. The Kremlin has proposed more than once to ban the export of logs, but for various reasons, it has never been implemented. Although this proposal, even raising tariffs by only 60% at present, is a disastrous blow to the Russian timber industry, the implementation of this measure is also a foregone conclusion. It is not only the local timber enterprises in Russia that have been hit, but also a large number of Chinese timber mill enterprises. Over the years, a large number of Chinese businessmen from Northeast China, Shandong and Singapore have set up timber factories in St. Petersburg, Siberia, the Far East and other regions, making a lot of money because of cheap labor and rich forest resources

and the ban is about to be implemented, where will they go

Russia will completely ban the export of conifers and valuable hardwood logs from Russia on January 1, 2022, and prepare a legislative and regulatory framework to set strict obstacles to the uncontrolled export of unprocessed wood. In addition, a preferential loan plan has been implemented since January 1, 2021 to promote the modernization of the wood processing industry and the industrial upgrading of Russian wood processing

Valentina, the president of the Council of the Russian Federation, proposed to completely ban the export of logs during the formulation of the new forest law at the beginning of last year, but later this idea did not get the support of the Russian government. In November 2017, Dmitry, the Minister of natural resources of Russia, proposed to stop exporting log timber to China (China accounts for 70% of Russia's timber supply)

at present, Russia imposes export tariffs on logs. After exceeding the rated allocation, the tax rate rises to 80%

after Russia joined the World Trade Organization (WTO) in 2012, it implemented the export quota policy, which is only used for log processing manufacturers. Within this framework, the tariff has been reduced to 6.5%. After exceeding the quota, by 2021, the tax rate rose to 8, the first 0% in the world. Therefore, according to the data, the timber harvesting volume has increased by 27% in ten years, reaching 212.4 million cubic meters in 2017, while the log export volume has tripled since 2006, falling to 19.4 million cubic meters in 2017, including the export volume to China from 23 million to 13 million cubic meters

in the Far East, timber exports are subject to the strictest restrictions. At the beginning of this year, members of the dalexportles Association (accounting for 52% of timber felled in the Far East federal district and 80% of timber processing) proposed to suspend the increase of export tariffs because of the massive decline in timber exports. Tariffs increased by nearly 28% in 2019. According to the association, the export tax on logs of conifers in the Far East should be 6.5%

in Siberia, the governor of Tomsk requested that there should be no restrictions on timber exports to China. At present, universal tensile testing machines and electronic tensile testing machines are widely used. With the rapid growth of China's construction industry and furniture industry, there is a high demand for wood products. For example, the breakthrough in the research and development of modified PEEK composite materials indicates that it will gradually replace the utilization proportion of traditional metal products in the chemical industry. As a result, Russia will lose its vast Asian market and transfer it to other countries

there are more than 600 wood processing enterprises in Tomsk Region, most of which have the participation of Chinese businessmen. Where will they go

wood industrial products account for 50.2% of the total export of Tomsk State. Since 2015, the export volume of unprocessed wood has decreased from 51400 cubic meters per year to 5800 cubic meters. The main exporting country of products is Uzbekistan, followed by China. This will be a fatal blow to enterprises that still mainly export logs and whole logs. This is a strong force to force small and micro timber enterprises to grow and transform. Who will rise and who will be eliminated? Will e-commerce platforms constitute big data analysis in spot trading, supply chain finance, warehousing and logistics