Russian forest sector becoming more international

Russia's forest industry is becoming better organized and more focused and could challenge Western manufacturers on world markets in the near future. This could be the case particularly if wealth accumulated from oil is pumped into Russia's forest sector (article on pages 394-397). Russia's forest sector comprises numerous fragmented groupings and networks with partly conflicting interests. This is reflected in regional differences: some production units and forested areas have moved in quite different directions to others in just a short space of time. Russia's forest industry has undergone a complete transition in the past 15 years. Rapid privatization of business was followed by a slump and a collapse in production. This was accompanied by frantic trading in equities. Delays in reforming forest-related legislation, ownership struggles and the social obligations placed on new production units have combined to dampen the enthusiasm of foreign investors. There are nevertheless signs that the sector is entering a period of investment and growth involving both Russian and foreign companies.