September 7, 2025
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Economy

Paper business is burning out in Russia

Paper business is burning out in RussiaThe Russian pulp and paper industry is experiencing a deep crisis, with enterprises operating at a loss and accumulating debts.
The largest timber industry holding “Segezha Group” declared a net debt of 147.9 billion rubles.

”, — write: unn.ua

The pulp and paper industry of the Russian Federation has plunged into a systemic crisis: the largest enterprises are operating at a loss, accumulating debts, and halting production. This was reported by the Foreign Intelligence Service of Ukraine (FISU), according to UNN.

DetailsIt is noted that Russia’s pulp and paper industry is experiencing a deep crisis. Leading enterprises are accumulating debts, operating at a loss, and facing massive lawsuits. Many productions are stopping, and employees are experiencing delayed salaries or no payment at all after dismissal.

In particular, the largest timber industry holding in the Russian Federation, PJSC “Segezha Group”, declared a net debt of 147.9 billion rubles, despite its revenue in 2024 increasing by 15% to 101.9 billion rubles. Attracting investments of 113 billion rubles in June 2025 did not save the company from unprofitability. In the Leningrad region alone, more than 300 arbitration cases have been registered against the holding for a total amount of 72 billion rubles

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

The crisis in the Russian pulp and paper industry reflects the general problems of the Russian economy: a decline in investment attractiveness, sanctions pressure, increased credit burden, and outflow of personnel.

RecallThe CEO of “Severstal” stated that the metallurgy industry in the Russian Federation is in crisis due to sanctions and the high interest rate of the Central Bank. Steel demand has fallen, and exports have decreased, threatening to halt the industry’s development.

In Russia, hidden unemployment and wage arrears are growing: the crisis is gaining momentum19.08.25, 16:29 • 3963 views

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