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Although still low in relation to its hardwood resource, sawn hardwood production in the Russian Federation has increased steadily during the past five years. Indeed, sawn hardwood production is developing in line with efforts to boost overall wood processing in Russia, but the industry is not evolving rapidly. Significant government incentives coupled with both public and private investment in the sector have been somewhat effective in boosting domestic log conversion, but Russia’s exports of hardwood logs – both declared and illegal - have continued to increase in recent years, with rising demand from China and other markets.

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