Russia: Logging industry in Karelia suffers losses

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RFR/IHB
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Unedged timber production in the Republic of Karelia in the first half of 2014 was 3.422 million m3 which is a 9.5% increase against the same period in 2013, the Russian Forestry Review reports data compiled from the Karelian Federal State Statistics Service. The most optimistic growth (40%) was shown by fuel wood production; in physical terms, however, the output remained small: 423.7 thousand m3.

The overall harvest is dominated by softwood: 729.1 thousand m3 for six months which is 7.4% more than the last-year harvest. Nevertheless, despite the best growth dynamics in the Northwestern Federal District, the logging industry of the republic reported losses exceeding 176 million rubles (EUR 3,5 million) for the first half year.

The pulp and paper industry is in the same position; it failed to reach a break-even point in spite of the augmented production. Thus, the net loss of Karelian pulp and paper industry exceeded 67 million rubles (EUR 1,3 million). It was only the woodworking sector that demonstrated income over 257 million rubles for the first half of 2014 (EUR 5,1 million).

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