The consultancy describes the Russian forest, paper and packaging sectors as a hot investment market which is growing robustly at a time when most of the global sector is contracting and rationalising.
Harvesting is well below what experts consider to be a sustainable rate, giving Russia great potential for the development of modern, sizeable forest, paper and paper-packaging industries.
“Multi-national forest, paper and packaging companies would do well to consider doing business in Russia”, said Clive Suckling, PWC’s UK forest, paper and packaging leader.
“Although companies will need to monitor legislative developments such as the new Forest Code closely, the environment should become increasingly favourable.”
Mr Suckling said that some potential investors could be deterred by Russia’s geographic, infrastructure and political challenges.
“The current risks of investing in Russia will not be eliminated overnight, but they can be managed, in our view,” he said. “The Russian government is clearly working hard to reform industry legislation and tariffs to stimulate and expand the domestic industry.”
Risks and Rewards – Forest, paper & packaging in Russia can be downloaded at www.pwc.com/fpp.
