The Paper Business Is Failing in russia

The pulp and paper industry in russia is experiencing a deep crisis. Leading companies are accumulating debts, operating at a loss, and facing massive lawsuits. Many production facilities are shutting down, employees are being paid late or not at all after being laid off.

In particular, russia’s largest forestry holding company, “Segezha Group”, has declared a net debt of 147.9 billion rubles, despite the fact that its revenue in 2024 grew by 15 % to 101.9 billion rubles. Attracting investments of 113 billion rubles in June 2025 did not save the company from unprofitability. In Leningrad region alone, more than 300 arbitration cases against the holding company have been filed, totaling 72 billion rubles.

The situation is no better in other regions. The largest plywood manufacturer in the Komi Republic, “FK Zheshart” LLC, at the end of 2024,  reported a net loss of 1.1 billion rubles, which is almost twice as much as a year earlier (584 million rubles).

The crisis in the russian pulp and paper industry reflects the general problems of the rf’s economy: a decline in investment attractiveness, sanctions pressure, an increase in credit burden, and an outflow of personnel.