Unpaid taxes and an increase in the value of the Ruble have led Siberia’s largest timber firm, Tobol Timber, to file for bankruptcy.

Russia’s Federal Tax Service has submitted a bankruptcy petition against the Tobol Timber Company, one of Siberia’s largest timber enterprises, due to substantial unpaid tax obligations, according to recent reports in Russian media. The Federal Tax Service has requested that a regional arbitration court initiate bankruptcy proceedings following the freezing of Tobol’s bank accounts on September 12, as reported by Ura.ru.

80,000 Hours

That’s a remarkable amount of work hours for a single machine, the Norcar 600 owned by Erkki Rinne is taken well care of, it even has the original Diesel engine.
Kieran Anders Forestry

Kieran Anders is a forestry contractor working in the lake district. His work involves hand cutting and extracting timber using a skidder and tractor-trailer forwarder.
Promoting safety in the workplace

It is not possible to eliminate chain shot, but there are simple steps that can be taken to reduce the risk.
Glasfryn Fencing and Sawmill

Arwel takes great pride in the fact that the mill has no waste whatsoever, “the peelings are used for children’s playgrounds, gardens and for farm animals in barns in the winter and the sawdust has multiple uses in gardens and farms as well.
Keeping Timber Hauliers Safe

Timber hauliers need to encourage young blood in, and also look after the hauliers we have, we need make the sector a safe and positive place to work.

FIND US ON

The difficulties faced by Tobol reflect a broader crisis affecting the Russian forestry sector. Recently, Alexei Mordashov’s Sveza group suspended operations at its Tyumen plywood facility and terminated the employment of 323 workers due to persistent declines in output and increasing financial losses. In July, the Russian Pulp and Paper Association issued a warning that a strengthening ruble, combined with collapsing exports to Europe, could precipitate widespread closures across the industry.

Bottlenecks in Russia’s rail network have delayed timber shipments, even as exporters seek to expand into new markets in Southeast Asia. Concurrently, diminished demand from China and intense competition from alternative suppliers have adversely affected profit margins throughout the sector. Bottlenecks in Russia’s rail network have delayed timber shipments, even as exporters seek to expand into new markets in Southeast Asia. Concurrently, diminished demand from China and intense competition from alternative suppliers have adversely affected profit margins throughout the sector.

Founded in 2018, Tobol Timber is engaged in sawmilling and wood planning operations. The company has faced significant challenges over the years, particularly prior to the conflict in Ukraine and as a direct consequence of Western sanctions. In 2024, Tobol Timber reported a revenue decline of 15.5 per cent, amounting to 123 million rubles (approximately $1.5 million). Although the firm’s losses decreased marginally to 72.9 million rubles (approximately $870,000) compared to 87.5 million rubles in 2023, it is noteworthy that the company has recorded financial losses in six out of its seven years of operation, with only one profitable year in 2021.

Owner and director Alexander Kiltau, the company’s sole beneficiary with a 17.3 million‐ruble stake, has attributed the challenges to sanctions: “Our inclusion in the European Union’s sanctions list and falling prices for Russian timber have squeezed our margins,” he told the Moscow Times, before revealing that commodity‐price volatility has battered the industry.