Adaptation of the Russian forestry industry to the post-Soviet structural transformation of the economy and the recent sanctions crisis

Objective: to analyze the structural transformation of the Russian forestry industry from the collapse of the USSR to the modern period, taking into account the effects of economic sanctions imposed starting from 2022, in order to identify key challenges and form strategic directions for its further development. Methods: monographic, historical, statistical, graphic, and comparative. Results: despite the deep transformational crisis of the Russian economy following the collapse of the USSR, over the years the Russian forest industry has managed not only to maintain but also to strengthen its position in the global market of forest products, expand exports and increase the supply of timber and consumer goods to the inner market. Even under the heavy blow of the European sanctions of 2022-2023 the industry is running well, although not without losses, especially in those types of products that had been exclusively export-oriented. However, the industry is still not using its full potential, especially under the new sanctions, which reduced exports to Europe and increased dependence on the Chinese market. The author notes that development of wood processing and forest resource management requires long-term investments. The author argues that the potential of using wood raw materials in the country could allow it to take a leading position in the world in the production of many types of forest products. Scientific novelty: the paper is the first to compare the current production structure and the role of the Russian timber industry in the global market with the industry’s peak in the Soviet years. It is also the first time that the impact of the 2022–2023 sanctions on the industry is being considered in detail, which has not previously been the subject of in-depth study. Practical significance: the results can be used to develop research on the economics of the Russian forest industry and to determine the strategic directions of its development. The proposed recommendations on investments in processing and management of forest resources can help to increase the industry competitiveness in the global market.