RUSSIA – More than USD 430 million worth of European furniture is expected to flood the Russian market in 2025, prompting the Furniture Association of Russia (FER) to call on President Vladimir Putin to raise import duties and protect domestic manufacturers.

The influx is driven by a strong ruble, low tariffs, and shrinking demand in Europe. The ruble appreciated 15% against the euro in the first quarter of 2025, making European goods significantly cheaper for Russian buyers. At the same time, local producers are facing rising costs for materials such as plywood, MDF, and particleboard, which are set to increase by over 15%—the first time in years such costs will outpace inflation.

Currently, European furniture imports are subject to tariffs of just 9–12%, despite EU countries imposing sanctions of 30–60% on Russian products. The FER argues this disparity, combined with EU subsidies and tax breaks, gives European exporters—particularly from Italy and Germany—a competitive edge.

Export volumes from both countries are approaching pre-COVID and pre-war levels as European firms seek to offset declining demand at home, which fell from EUR 48.5 billion in 2021 to EUR 38 billion in 2024.

Meanwhile, Russia’s domestic furniture output has slipped by 2%, with producers struggling to absorb rising input costs and increased foreign competition. The FER is urging the government to adopt a more protectionist stance, similar to measures being considered in the United States, to ensure the long-term viability of the Russian furniture industry.

Source: https://woodcentral.com.au/