russian forestry industry is cutting back production and suffering losses
In russia, enterprises in the forestry industry are massively cutting production and suffering losses.
The sector has seen a 13% drop in logging, an 11% decline in lumber production, and a 23% decrease in plywood output compared to 2021.
After losing access to the European market due to sanctions, the industry has been left without profit. The situation is worsened by high taxes, the key interest rate, falling demand in China, and stagnation in the construction sector.
The first to lose their jobs will be workers at wood-processing plants in regions with no alternative employment. russians can expect rising unemployment, shrinking local budgets, and reduced social benefits. For businesses, this is the collapse of an entire industry; for the country, it’s a blow to foreign currency earnings and a source of regional instability.
Despite all kremlin claims about “sanctions resilience,” russian economy continues to crumble. Isolation, export contraction, declining production, and the inability to sustain raw-material sectors without access to foreign markets are driving gradual economic degradation.
Earlier, the Center reported that due to a deepening crisis in russia’s coal industry, mining enterprises have begun to shut down.
