A study conducted by PricewaterhouseCoopers has called attention to Russia’s strong forest sector.
A study conducted by PricewaterhouseCoopers has called attention to Russia’s strong forest sector.
The PwC study, entitled Risks & Rewards Forest, Paper and Packaging in Russia, confirms the country’s annual harvest is well below what is considered a sustainable rate, and that it needs to attract investments in infrastructure and new facilities, as well as revisit some of its existing legislation.
“Canadian and U.S. forest products companies have demonstrated an interest in getting involved in Russia’s forest sector,” Bruce McIntyre, who leads PwC’s Canadian forest, paper and packaging practice, said. “Recent discussions have been held with Russian forest agency and company officials about the investment opportunities there. The Russian government is working hard to reform the legislation and tariffs to stimulate development and expansion of the domestic forest, paper and packaging sector, but the current risks will not disappear overnight.”
The study features a comprehensive analysis of the economic, political and cultural environment for the industry, which lies behind the growth potential and risks for many global players.
As PwC notes in its report, the Russian government is focusing heavily on promoting domestic industry, while moving away from imports, particularly in natural resource-derived products, which will likely begin to exert significant impact on world supply and demand.
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