Russia has rich forest resource accounting for 25% of the total volume in the world.The scale and quality of Russia’s forest resource provides a huge economic potential for its forest products industry despite its undeveloped transportation and economic conditions.The comparative advantages in forest products between China and Russia are extremely complementary.This provides an opportunity for Chinese investors to establish wood-based panel manufacturing plants in the far-eastern and Siberian areas of Russia.A feasibility study was conducted to examine the economic policies,wood product markets,and import/export potentials of Russia.Successful establishment of wood-based panel plants in Russia will not only provide relief to the increasing wood resource shortage in China,but also help local business by utilizing the forest resource more effectively and economically.