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Though it is a paper producing country, Russia is still a promising export market for u.s. Paper goods. Despite its huge forestry stocks, the soviet union was never self-sufficient in paper and paper products; present-day Russia is not either. 1994 paper output dropped to 40 to 60 percent of pre-recession levels; the emergence of hundreds of new newspapers, magazines, and book publishing houses increased demand. As the economy modernizes and living standards grow, national demand diversifies and becomes consumer- oriented. 1994 witnessed a rapid increase in imports of household and hygienic paper goods, stationery, labeling, and wallpaper. These goods are still unfamiliar to most russian producers or, if manufactured locally, are of inferior quality. Domestic production facility restructuring will require investments and time. Importing will continue at an estimated 15 percent yearly rate, and U.S. Companies can benefit from these opportunities. American exports are anticipated to rise from last year usd 6 million to next year over usd 7 million. Paper imports are subject to the 15 percent customs duty rate in russia but numerous best prospect articles in short supply are admitted duty free or under discounted rates. Promotion and advertising will be required; investments and joint ventures should be considered.