Wood fuel market in Russia

Earlier Report Observations

From 2018 to 2020, the Russian wood fuel market volume contracted from 10.4 million m³ to 5.5 million m³. This decline was driven by long-term structural factors, including urbanization, the expansion of gas infrastructure, and competition from coal, which reduced demand for traditional fuelwood. The COVID-19 pandemic in 2020 further disrupted supply chains and dampened consumption.

Market volume stabilized at 5.8 million m³ in 2021, supported by tightening environmental standards and growing consumer preference for wood pellets as a cleaner fuel. A sharp reversal occurred in 2022 when a ban on exports of unprocessed timber, combined with Western sanctions, caused exports to plummet from 9.3 million m³ to 3.9 million m³. This redirected substantial wood volumes to the domestic market, expanding its size to 9.6 million m³.

The trend continued in 2023 as exports fell further to 1.5 million m³, pushing domestic market volume to 10.5 million m³. Producers increasingly focused on internal consumption and shifted export flows to alternative markets like the Middle East and North Africa. The ongoing export restriction in 2024 continues to support robust domestic demand for wood fuel and processed wood products.

Production wood fuel in Russia

In kind, 2017-2020, K m³

Between 2017 and 2020, Russia was one of the world's leading producers of wood fuel, ranking 28th globally by production volume.

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Wood fuel production in Russia declined for the second year in a row. In 2020, Russia produced 15 109 K m³ of wood fuel, which was 0.6% lower than the previous year. Over the period from 2017 to 2020, production increased by 2.2%, translating to an average annual growth rate of 0.7%. The highest production level was recorded in 2018 at 16 431 K m³, with the largest increase of 11.1% occurring that year. In contrast, the largest decline of 7.5% was observed in 2019.

Annual dynamics of production in Russia in kind, 2017-2020, K m³

In value, 2017-2020, M $ US

Wood fuel production in Russia declined for the second consecutive year. In 2020, the output was valued at 784.9 M $ US, down by 10.1% compared to the previous year. From 2017 to 2020, production increased by 21.5%, with a compound annual growth rate of 6.7%. The peak value was recorded in 2018 at 901.9 M $ US, which also saw the largest increase of 39.6%.

Annual dynamics of production in Russia in value, 2017-2020, M $ US

Exports wood fuel from Russia

Exports in kind, K m³

Russia's wood fuel exports increased for the third consecutive year. In 2020, Russia exported 9 590 K m³ of wood fuel, showing a strong increase of 24.0% compared to 2019. Over the period from 2017 to 2020, exports grew by 63.9%, with a compound annual growth rate of 17.9%.

Annual dynamics of product's exports from Russia in kind, 2017-2020, K m³

From 2017 to 2020, Finland, Denmark, and Sweden were the main markets for Russia's wood fuel exports in volume terms. Finland accounted for 50.6% of exports, Denmark for 17.8%, and Sweden for 4.5%, together representing 72.8% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Russia in kind, 2017-2020

Exports in value, M $ US

Russia's wood fuel exports increased in value for the third consecutive year. In 2020, exports reached 498.2 M $ US, which was 12.3% higher than in 2019. Over the period from 2017 to 2020, exports increased by 94.9%, with a compound annual growth rate of 24.9%.

Annual dynamics of product's exports from Russia in value, 2017-2020, M $ US

Between 2017 and 2020, Finland, Denmark, and Sweden were the three principal markets for Russia's wood fuel exports in value terms, together accounting for 63.2% of total exports.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Russia in value, 2017-2020

Imports wood fuel to Russia

Imports in kind, K m³

After a two-year rise, Russia's wood fuel imports declined. In 2020, imports were recorded at 29 K m³, reflecting a drop of 25.2% compared to the previous year. From 2017 to 2020, imports increased by 14.4%, equating to an average annual growth rate of 4.6%. The highest import volume was in 2019 at 39 K m³, which also saw the largest increase of 30.0%.

Annual dynamics of product's imports to Russia in kind, 2017-2020, K m³

Throughout 2017 to 2020, Indonesia, Germany, and Belarus were the largest sources for Russia's wood fuel imports in volume terms, together accounting for 83.1% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Russia in kind, 2017-2020

Imports in value, M $ US

Russia's wood fuel imports increased in value for the third consecutive year. In 2020, Russia imported a total of 13.5 M $ US of wood fuel, up by 3.4% compared to the previous year. Between 2017 and 2020, imports increased by 36.9%, with an average annual growth rate of 11.0%.

Annual dynamics of product's imports to Russia in value, 2017-2020, M $ US

From 2017 to 2020, Indonesia, Germany, and Poland consistently led as the top sources for Russia's wood fuel imports in value terms. Indonesia accounted for 53.4% of imports, Germany for 20.4%, and Poland for 6.3%, jointly making up 80.1% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Russia in value, 2017-2020