Problems and directions of small forest business development in the Republic of Komi

The study presents the assessment results on the forest business development in the Republic of Komi. The work identifies the key problems of the forest business development with possible solutions. The small forest business has been shown to play an important social role for the rural settlements where it often is the only source of economic base formation. The first post-perestroika 30 years was a period in the Komi Republic when the total production volume was done by less than two dozen large enterprises of the complex. The monopolization of forest resources gradually decreased the number of small forest business enterprises as they could not compete for raw materials and closed. In order to maintain and develop the forest business, the enterprises should change the concept from products with a low added value, sawn timber or logging, to products of high processing levels. The regional authorities should try to restore the timber processing industrial plants in every district which will make various wood products. The promising directions are production of thermo-modified wood, woody and coniferous flour, and essential oils.