We picked this set up in Hong Kong in the 80s when my dad was posted out there in the army. It used to be set up in our house as a display item for years and then you packed away. Found out recently that my dad was about to give it away and rescued it.
I don't have anybody to play OTB during lockdown so I've been using it to play bots (making all my moves OTB and then updating the board on the computer) and for some reason I keep struggling to recognise the bishops and leaving pieces hanging in their way. It's taking some practice to easily and quickly read the board.
Pieces are machine carved by the looks of it and it's definitely a commercially produced item from a dept store or something, no idea where we got it from though...
Edit - it's not magnetic...I just botched the picture upload 
Yes, I think that's pretty much right.
It's a former soviet factory material, which is still turning
The reason why they don't go into the "market", could be simply that there is no market!
They are lancing more in other lucrative products, nice painting and luxury "style" items, so that the mass production of wooden chess sets can surely serve exclusif the national market .
Chess sets are overflooded by India (wood) and China (plastic), even the current shortage, will rebond in a view year with a huge overstock on ebay etc.
So better run steady ?
I really like these sets, specially the 4cm fields, which is a very nice contrast to all the common commercial stuff !