Exports of Roundwood and Sawnwood from Russia and Effects on Markets Competition

Abstract
International trade of roundwood and forest industry products connects the developing forest sector in Russia to international economy. Russian wood market has become more export orientated over the last decade, partly due to the drastic decrease in national consumption after the collapse of Sovjet Union. This project analyzes determination of exports of roundwood and sawnwood from Russia to its main European markets (Finland/Sweden for roundwood, Germany for sawnwood). Also a case study will be made on the firm level characteristics and differences between Russian and foreign owned forest industry companies operating in Russia. Furthermore, we study how integrated the markets for forest sector products, particularly roundwood and wood products, are in Russia, Scandinavia and overall in northern Europe. In particular, we focus on studying price convergence and adjustment of prices in changing market structures. Results of the project are useful for the Finnish and international decision makers in better understanding of the functioning of roundwood and sawnwood markets in Northern Europe. Results also give indications of the future competitive situation of the Finnish forest sector, and point out for possible ways for finding measures to improve the competitiveness.