Over US $430 million worth of European furniture is expected to enter the Russian market in 2025, driven by a strong ruble, low import tariffs and declining demand in Europe. The Furniture Association of Russia (FER) has called on President Vladimir Putin to increase import duties to protect domestic manufacturers, warning that current policies are undermining the local industry.

The ruble appreciated 15% against the euro in the first quarter of 2025, reducing the cost of European imports for Russian buyers. At the same time, Russian producers are facing rising costs for materials such as plywood, MDF and particleboard, which are expected to increase by over 15%—outpacing inflation for the first time in years.

Currently, European furniture imports face tariffs of just 9–12%, despite European nations imposing sanctions of 30–60% on Russian goods. The FER argues that this imbalance is harming Russia's manufacturers, especially as European firms benefit from subsidies and tax incentives that allow them to undercut local prices.

Italy and Germany are leading the surge in exports to Russia, with volumes returning to near pre-COVID and pre-war levels. European furniture demand has dropped from €48.5 billion in 2021 to €38 billion in 2024, prompting manufacturers to seek alternative markets like Russia.

Meanwhile, Russian domestic furniture production has declined by 2%, with firms struggling to absorb rising supplier costs and intensified competition. The FER stated: 'If the US can prioritise domestic production regardless of trade agreements, Russia should adopt a similar stance to safeguard its industry.'

The association is urging policymakers to mirror protectionist strategies, such as those under consideration in the United States, to ensure the long-term viability of Russia's furniture sector.

Source: woodcentral.com.au