| Summary: | The Russian forestry industry does not lend itself easily to the creation of economic structures. Yet this industrial sector is key to the economic development of number of regions. Often there is practically no alternative to forestry and timber processing for the economic development of many municipalities, remote settlements, towns and villages, and it is their only source of employment. Moreover, the timber industry can play a significant role as a starting point in the diversification of the regional economies with dominant economic activities, such the Khanty-Mansiysk Autonomous Region of Ugra. In the light of the relevance and importance of increasing the effectiveness of the industrial policy as a whole, and with focus on the timber industry in particular, the authors have analysed the prevailing prerequisites for the establishment of a timber industry cluster in the Region studied. The authors review the operation in the region of its industrial policy tools aimed at the creation and development of a cluster in the timber sector. They reach conclusions about the expected positive economic effects.
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