An undercover investigation by Earthsight has revealed widespread laundering of Russian and Belarusian timber into the EU in breach of sanctions put in place in response to Russia's brutal invasion of Ukraine. 'Blood timber' with a retail value of over €1.5bn is estimated to have entered the EU since sanctions took effect in July 2022. Twenty container-loads continue to arrive every day.
These conclusions were published by the British non-profit organization Earthsight following its own investigation.
"The Russian military profits directly from timber sales, and Russia is among the largest producers of wood in the world. The EU sanctioned wood imports from Russia and its ally Belarus in recognition of the industry's importance to their economies, and in response to appeals by civil society," writes Earthsight.
The company spent nine months on the investigation, posing as buyers to gain insight into the workings of the market. They recorded testimonies from traders who described their operations and confirmed the existence of the trade. As a result, seven out of the ten largest Moscow-based manufacturers and exporters of birch plywood continue to supply their goods to the EU despite the imposed sanctions. Since 2022, profits of over €1.5 billion have been made from more than 500,000 cubic meters of exported timber, which was smuggled and sold through third countries such as Kazakhstan, Turkey, China, and others.
Additionally, through the analysis of trade statistics and customs records, the company tracked that timber imports to the EU have significantly increased, and it is likely that all 27 EU countries are accepting illegal timber from Moscow.
"Sanctioned plywood is making its way into a wide range of products, including kitchens, flooring, furniture and toys. Birch ply suppliers in China, Kazakhstan and Turkey claimed to Earthsight undercover investigators to be laundering sanctioned Russian wood into the EU. Buyers of birch ply from the same firms, records show, include Walltopia, the world's largest manufacturer of artificial climbing walls. Other buyers include a company whose products are stocked by leading Polish furniture chain Black Red White. Though we have no proof these European buyers are breaching sanctions or are aware of the risk of the plywood they buy being of Russian origin, other EU firms we met with undercover were all too aware of the provenance of the birch ply in their supply chains," writes Earthsight.
Among the largest importers are Poland, Germany, Spain, Portugal, Italy, and Estonia.
