Development of Forest Sector in Notrhwest Russia and its impact in Finland

After the transition from USSR to Russia the use of timber resources decreased to one third from the level in the early 1990's together with decrease of international competitiveness of Russian forest product export
Due to the weak domestic demand in Russia most timber items have been exported to Finland. This has had direct and indirect impacts on both Russian and Finnish economies and local and regional communities through employment, stumpage and procurement prices and incomes
The national target in Russia is to increase domestic value added in forest industry and promote investments in forest sector
Due to the differencies in market environment, infrastructure and forest technology the working and habits of Finnish and Russian forest managers may lead difficulties in intercultural communication

To analyse economic alternatives to expand the domestic use of roundwood in Northwest Russia
To investigate the potentials for joint efforts to promote forest industry in Finland and Russia
To identify and evaluate the economic policy actions in Russia which should promote the domestic timber use and investments on forest sector
To analyse the economic effects from the increased domestic timber use and roundwood trade in Russia on the local an regional communities in NW Russia and Finland
To study and compare the intercultural communication differencies between Finnish and Russian managerial decision makers in forest sector

Analysis of forest investments and roundwood export from NW Russia

Present state of the wood production capacity in NW Russia is presented and the profitability and eagerness of forest industry investments is evaluated
The effects of economic policy interventions on investments and rounwood trade is studied
Giving answer to the question, how to promote domestic value added and roundwood use in NW Russia
Work package leader, Prof. Pekka Ollonqvist, pekka.ollonqvist @ metla.fi

Analysis on intercultural differencies of Finnish and Russian forest sector managers

A representative group of Finnish and Russian forest managers are interviewed to achieve information on the differencies and difficulties on intercultural communication concerning trade and forestry investments
Work package leader, Dr. Jari Viitanen, jari.viitanen @ metla.fi

Analysis of economic effects of roundwood trade on local and regional communities

Input-Output analysis is used to evaluate economic impacts of harvesting and timber trade on Russian and Finnish local and regional communities
Work package leader, Lic.Soc.Sc. Mikko Toropainen, mikko.toropainen @ metla.fi

Overview of the present situation of investments in Russian forest sector
Evaluation on the supportive and impeding economic policy actions of Russian authorities
Identification of the major obstacles to achieve international competitiness in Russian forest industry
Information on differencies on intercultural decision-making between Finnish and Russian forest managers
Evaluation of the impacts of roundwood trade on Finnish and Russian local and regional economies
Research training: 1 possible master's thesis (topic to be decided), Doctoral dissertation: One chapter covering cross-cultural comparison in forest managers' decision-making in Natalia Vinokurova's doctoral thesis

Finnish Forest Research Institute: Prof. Pekka Ollonqvist, Dr. Jari Viitanen, Lic.Soc.Sc. Mikko Toropainen
Moscow State Forest University: Mrs. Natalia Vinokurova
European Forest Institute: Mr. Alexander Moiseyev

Ollonqvist, P., Viitanen, J., Holopainen, P., Pirhonen, I., Marttila, J. & Toropainen, M. 2007. Metsäteollisuuden investoinnit Luoteis-Venäjällä sekä puunkäytön lisäyksen aluetaloudelliset vaikutukset Itä-Suomessa. Julkaisussa: Karjalainen, T., Ollonqvist, P., Saastamoinen, O. & Viitanen, J. (toim.). Kohti edistyvää metsäsektoria Luoteis-Venäjällä - Tutkimushankkeen loppuraportti. Metlan työraportteja/Working Papers of the Finnish Forest Res. Inst. 62: 69-89.
Vinokurova, N., Ollonqvist, P., Holopainen, P., Viitanen, J., Mutanen, A. & Gerasimov, Y. 2005. Challenges in roundwood trade between Finland and Russia a cultural approach. Working Papers of the Finnish Forest Research Institute 7. 34 p.
Ollonqvist, P., Holopainen, P., Viitanen, J., Vinokurova, N. 2006. Yhteenveto Suomen ja Venäjän välisen raakapuukaupan kulttuurierotutkimuksen tuloksista. (pdf 153 kb)
Holopainen, P., Ollonqvist, P. & Viitanen, J. 2006. Factors affecting investments in Northwest Russian forest sector and industry. Working Papers of the Finnish Forest Research Institute 32. 49 p.

pekka.ollonqvist @ metla.fi

Forest Industry Investments and Economic Effects of Wood Flows on Local and Regional Communities in Northwest Russia and Finland