In April 2009, DISCOVERY Research Group completed a study on the Russian market of wood-based panels and plywood in 2008.

Having a quarter of world timber resources, Russia has only 2.3 % in the global timber production and only 2.8% in the timber trade. Only 20% of harvested wood goes to the production of deep processing.

In July 2008, the experts rated the value of the domestic market of timber and forest products in more than $ 4 billion, excluding wood fuel, waste, wood chips and shavings. The market is dominated by raw wood (industrial roundwood, including sawlogs, pulpwood and other materials). The share of this segment accounts for about 47%.

According to experts, the capacity of domestic market of wood products is currently around $ 2-2.5 billion. The share of sawn timber accounted for more than 50%, on plywood – 40% and about 10% – on hardboard panels and particle board. DISCOVERY Research Group forecasts a further increase in the market of wood based panels and plywood associated primarily with increases in construction, repairing and finishing works.

Russian industry in 2008 was developing under the negative influence of the global financial crisis. According to expert estimates, in 2008 the volume of timber harvested declined by almost 22% – from 206 million cubic meters in 2007 to 162 million in 2008. According to the Ministry of Agriculture in 2009 the physical volume of the workpiece will 30% fall – up to 100 million cubic meters. And the most affected will be small and medium logging companies. The biggest decline is projected in the logging industry, which is to date the most technologically backward, and the least consolidated of the Russian timber industry.

Until 2008, the Russian timber industry was steadily growing. In 2007, according to the RF FSGS, the index of production of wood processing and manufacturing of wood products amounted to 106.2%. In the woodworking industry there was faster developing of production of particle boards, and plywood and sawn timber. An additional impetus to the development of this industry was the development of housing based on wooden structures. The main factor for the development of pulp and paper industry in recent years has been expanding production of cardboard, due to rapid growth in demand for packaging.

Problems of the Russian timber industry relate primarily to the low efficiency of production, lack of investment, high levels of illegal logging.

Exports of timber and sawn timber in 2008 from Russia are estimated at $ 8.8 billion, of which $ 3.4 billion is the raw wood – to produce a deep level of processing an average of $ 10.2 billion. Thus, the loss of Russia's economy is about $ 7 billion.

In order to reduce the volume of exports of unprocessed wood in 2007, the Government approved a phased increase of export duties on raw timber until 2010. Since July 2007 the export duty on roundwood increased to 10 euro, in 2008 – up to 15 euros per cubic meter. As a result, according to the FCS, the percentage of exports of timber and pulp and paper products in total exports to foreign countries in 2008 decreased and was 2.3% versus 3.4% in 2007.

It is anticipated that specifies the scope of consumption in Russia has traditionally left the construction and renovation sector, which would apply to 75% of the sawn timber produced, up to 35% of plywood, and furniture production, which will be used up to 80% of the CPD, to 35% SMD and 30 % plywood.