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The European Commission is investigating potential illegal imports of Russian birch plywood products into the European Union. CELEX:32023R1649:EN:TXT.pdf (europa.eu) There has been a significant increase in imports of Russian birch plywood into Turkey and possibly Kazakhstan, and an increase in exports of birch plywood from both countries to the EU—although neither has been a significant producer of birch plywood in the past. The EU banned Russian wood after Russia invaded Ukraine.
Before Russia’s invasion of Ukraine in February 2022, about 80% of all birch plywood globally was produced in Russia, Belarus and Ukraine.
After the fifth package of sanctions imposed on Russia by the EU finally entered into force in July 2022, the import of roundwood and wood products, including birch plywood, from Russia to the EU was banned. However, according to information and statistics obtained from the market, it seems that illegal Russian birch plywood continues to be imported to Europe from third countries.
This is reflected in increased imports of birch plywood from countries such as Kazakhstan and Turkey. Considering the production capacity of Kazakhstan, we can see that the country does not have sufficient birch plywood production to be able to deliver the volumes recorded in the statistics.
Illegal birch plywood travels to the European markets in many ways. The import ban is evaded by transit through a third country, for example. The third countries may also make minor changes to the plywood, after which the country where the changes were made is reported as the products’ country of origin. Another way is to use a false tariff heading so that the product is excluded from sanctions.
The EU first imposed trade sanctions on Belarus timber products on 2 March 2022. These were extended to Russian timber products on 8 April 2022. On 10 March 2022, Russia’s Industry and Trade Ministry announced a ban on all wood and timber-related exports to “unfriendly countries”, including the EU, UK and US. Both leading certification organisations, the PEFC and FSC, announced in March 2022 that all timber originating from Russia and Belarus would be categorised as ‘conflict timber’ (i.e. from a controversial source) and not eligible to be sold and promoted as PEFC- or FSC-certified. This had a significant impact on many European companies which had become heavily dependent on Russia and Belarus for their supplies of certified wood.
The EU first imposed trade sanctions on Belarus timber products on 2 March 2022. These were extended to Russian timber products on 8 April 2022. On 10 March 2022, Russia’s Industry and Trade Ministry announced a ban on all wood and timber-related exports to “unfriendly countries”, including the EU, UK and US. Both leading certification organisations, the PEFC and FSC, announced in March 2022 that all timber originating from Russia and Belarus would be categorised as ‘conflict timber’ (i.e. from a controversial source) and not eligible to be sold and promoted as PEFC- or FSC-certified. This had a significant impact on many European companies which had become heavily dependent on Russia and Belarus for their supplies of certified wood.
EU27 import value of wood and wood furniture from China increased only 4% to US$6.0 billion in 2022, although this did build on a massive 42% gain the previous year. Import value from Ukraine also increased by 9% to US$1.9 billion in 2022, despite the serious disruption due to the war, following a 55% gain the previous year. Other significant beneficiaries were Turkey, for which EU27 import value increased 32% to US$890 million last year, and non-tropical products from Brazil which recorded a 54% increase to US$ 690 million in 2022
Deforestation Inc. reporters in a dozen countries investigated weak government efforts and loopholes allowing companies to keep trading Myanmar teak, a natural resource controlled by the military junta.
The Deforestation Inc. investigation by ICIJ and its 39 partners found that timber traders in three continents have continued to import Myanmar teak by the ton to supply shipbuilders and furniture manufacturers around the world, while consumers may be unwittingly financing the junta’s repressive campaign.
The reporters visited boat shows in Fort Lauderdale, Amsterdam and Paris to learn about the international teak market. They interviewed timber traders in 11 countries and pored over documents leaked from Myanmar’s tax agency and shared with ICIJ by Justice for Myanmar, a human rights group, U.K.-based news outlet Finance Uncovered and Distributed Denial of Secrets, a data transparency group.
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Cases from Slovenia, Croatia, USA, Italy, the Netherlands, Germany, New Zealand, Turkey, Taiwan, France, and India are included.
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