The timber industry plays a significant role in the economy of Vologda Oblast. The region is identified as a priority area for the advancement of the forest industry, as evidenced by its incorporation into the Strategy for the Development of the Forest Complex. Concurrently, a number of constraints impede the advancement of the complex, with the unstable geopolitical situation occupying a particular position of prominence. In light of these circumstances, it is imperative to identify strategies for its advancement. The objective of this study is to develop mechanisms for the advancement of the timber industry in Vologda Oblast. The objective is to identify the principal avenues for the advancement of the complex and to evaluate the impact of these developments on the regional economy. In the context of geopolitical turbulence, domestic demand is a more predictable and manageable variable. The development of wooden housing construction, bio-refining, the manufacture of pulp, paper and paper products, primarily packaging materials, as well as timber chemical production are identified as promising areas for the stimulation of growth. In order to illustrate the potential economic impact of the timber industry on the Vologda region, this study employs the example of an investment project for the construction of a plant for the production of CLT panels. The research was conducted using a synthesis, analysis and intersectoral modelling approach. The information base comprises data from the Vologda Statistical Office, EMISS, and research conducted by domestic authors.