The flow of illegal Russian and Belarusian timber into the European Union (EU) is a serious problem that not only distorts the market but also undermines the principles of European legislation and the effectiveness of international sanctions. According to an investigation by the British investigative journalism platform “Earthsight”, the total value of smuggled timber reaches 1.5 billion euros, and the routes by which it enters are well organised, circumventing the sanctions the EU has imposed on the aggressor states.
Circumventing sanctions and its consequences
Although trade in Russian timber has fallen fivefold since sanctions were introduced, it has not stopped — it has merely changed form. Russian birch plywood exports, for example, are now often disguised by routing them through third countries where the timber itself is not harvested at all. These include Egypt, where birch does not grow, as well as Kazakhstan and Uzbekistan, which since the introduction of sanctions have become some of the largest “exporters” of birch plywood. Alongside this, a large volume of illegal timber reaches the EU via Turkey, Georgia and China, where the goods are relabelled to conceal their true origin.
Illegal timber not only distorts competition and encourages price dumping on the European market, it also directly finances Russia's “war machine”. Timber is one of the most important sectors of the Russian economy and makes a substantial contribution to that country's state budget. Many of Russia's forestry regions have direct links to the military sector, and so illegal trade only reinforces the aggressor's economic stability.
What are “Latvijas Finieris” and the authorities in Latvia doing?
For several years now, AS “Latvijas Finieris” has been working actively with international institutions to tackle the inflow of illegal timber into Europe. We work closely with the European Commission, the European Panel Federation (European Panel Federation) and the responsible Latvian institutions in order to monitor the market situation and detect potential cases of sanctions circumvention.
Every day, my colleagues and I analyse market statistics and information on the origin of timber. As a result, in 2024 Latvian institutions took significant measures that reduced illegal plywood imports into Latvia thirtyfold compared with the previous year. The main problem at present is the ports of other EU countries through which illegal products continue to enter the EU market — Greece and Portugal, among others. These are countries which, according to “Eurostat” data, have no significant plywood manufacturing industry or consumers.
Action by the European Commission
The EU's position to date on combating illegal plywood has been fairly responsive and active. The most effective instrument so far has been anti-dumping regulation, which from May 2024 made it harder to import birch plywood from Turkey and Kazakhstan. In October 2024 the European Commission launched an anti-dumping investigation into imports of hardwood plywood from China. This is an important step, but stricter regulation and more effective mechanisms are needed to prevent third countries from being used to circumvent sanctions. “Earthsight” has submitted evidence to the European institutions, calling for timber sanctions to be tightened and extended to products made from Russian timber in other countries. Finland has closed its land border with Russia, and several investigations have been launched in Poland.
Although many EU countries have tightened controls and are taking additional measures to prevent illegal plywood imports, some countries within the European economic community itself remain the weak link in this system.
What should buyers and the industry do?
Industry representatives and end consumers themselves play an essential role in the effectiveness of sanctions. In recent years we have frequently seen situations in which unscrupulous traders offer sanctioned plywood products of Russian origin at implausible prices online, by email and also at face-to-face meetings. Some take part in various trade fairs, where they brazenly mislead people about the origin of the timber, as laboratory analysis of samples has confirmed. In most cases these goods are supplied with altered labels and forged documents in order to conceal their origin.
We urge everyone in the sector, as well as consumers, to report suspicious offers and to co-operate with the responsible institutions — in Latvia these are the Customs Board of the State Revenue Service, the Financial Intelligence Unit and others, the State Forest Service, FSC timber certification bodies, and Latvian banks. Only by working together can we prevent illegal timber from continuing to flow into the European market and financing Russia's military operations.
Eradicating illegal plywood is not only an economic issue but also a matter of European security and political stability. This is a fight in which everyone must take part — manufacturers, traders, legislators and consumers alike.