Forests and forest-related sectors could play a major role in the transition of the global economy from dependence on fossil fuels and non-renewable raw materials to sustainable production and consumption. Forest resources in Russia account for over 20 % of global stocks and can play a significant role in the development of the new forest-based bioeconomy. However, Russian forestry remains very much orientated towards traditional, long-standing foundations that were designed in the middle of the last century. Many of the foundations are out of date and require development. Several attempts have been made to innovate Russian forestry, and recently these have been closely linked to learning and understanding the Nordic experience in forestry, particularly from Finland and Sweden. Interest in Nordic forestry was stimulated by the greater productivity and profitability, achieved under very similar environmental conditions to Russia. Investment in soil preparation, active silvicultural systems, and road construction, as well as the utilisation of wood-based energy, are among the factors that affect the outcomes of forestry in Nordic countries. As such, it is believed that Nordic forest practices could bring several innovative and proven-over-time solutions to the development of forestry in Russia. However, due to the unique institutional and operational frameworks that currently exist in the country, Nordic forest solutions cannot be readily adapted for the local conditions. Transfer and implementation of the solutions require an understanding of the Russian operational environment.
Thus, the general aim of this thesis was to systematically analyse the opportunities and challenges of reforming the forestry sector in Russia through the adoption of possible innovations from Finland and Sweden. The study focused on the Nordic forest solutions in intensive forest management (NIFMS), road construction (NFRS) and forest energy utilisation (NFES). In addition, the general principles of strategic planning and thinking used by the Russian forestry companies were studied. The empirical part of the study was based on an analysis of the situation in the Republic of Karelia, one of the main forest regions in Russia, whose territorial and resourcing indicators are commensurate with Finland and Sweden. The key findings and conclusions are of relevance for other forest regions in Russia.
According to the results, Nordic forest solutions look promising for the Russian forestry sector, although transferring and implementing the solutions in Russia might be limited due to political and legislative factors in the local operational environment. Specifically, the prospects of NFRS are accompanied by an unprepared regulatory climate regarding the prolongation of forest leasing contracts, while NFES is stymied by a lack of sufficient economic and legislative drivers to support the development of biofuels in Russia. A sufficiently dense road network and the utilisation of energy wood are important components of NIFMS, where the latter is cited as the centrepiece of the solutions. Therefore, the solutions need to be addressed in an integrated manner, as a single packaged issue. The planning and application of the solutions should follow the principles of sustainable development, otherwise, the solutions might fail in the long-term. These principles are not yet embedded in the Russian operational environment and this should be carefully considered in future forestry development in the country.