In the article substantiates that development of forest complex of the Russian economy is not possible without the implementation of structural reforms and emphasis on diversification of forestry as an important industry segment. Reasons for diversification of forest complex are shown, including: disparities in development of technological chain - forestry-logging-woodworking; technological, territorial and economic fragmentation of forest, harvesting and processing enterprises and industries; infrastructural and economic barriers; low level of Research and Advanced Development and industrial innovation at all stages of technologically related industries. It is proved that diversification of forestry should be carried out at the level of the most significant sub-systems: reforestation and afforestation in order to transfer to the technologies allowing reducing the period of growing of wood and target assortments. Diversification of forestry is possible during the transition from forest crops to plantation afforestation through the establishment of industrial forest plantations on the lands of forest fund. To reduce the risk component in the diversification of forest production, creation of industrial forest plantations must be carried out not far from industrial consumers of wood, which will ensure the economic feasibility of growing, harvesting and delivery of wood raw material. The proposed mechanism of diversification in combination with biotechnology will provide increasing demand for timber, with significant reduction of the environmental load on natural forest stands, allowing you to preserve natural ecosystems for purposes of recreation. Introduction of biotechnology in forestry will reduce the gap in development segments of the forest complex and increase wood supply for diversified industries. Diversification of forestry and development of industrial plantation afforestation is constrained by legal framework and absence of measures of financial support of enterprises of forest complex.