Investigators at UK-based non-profit organisation, Earthsight, have uncovered a booming trade in illegal Russian timber stretching throughout Europe and breaching war sanctions; according to an investigation by the NGO, nearly €90 million worth of Russian timber has been smuggled into Estonia.
The investigation caught firms on camera, in voice calls and through internal documents arranging a steady flow of Russian plywood into the EU.
“These companies are selling their illegal wood across the continent, and their customers include important manufacturers of climbing walls, toys, flooring, furniture and other products,” the NGO said in a statement.
Posing as buyers over a nine-month period, the investigative non-profit Earthsight recorded traders admitting the practice is illegal, calling it a “gold mine” and suggesting techniques to avoid detection.
The NGO estimates that over 500,000 cubic metres (18 million cubic feet) of illicit timber, worth more than €1.5 billion, has entered the EU from Russia via third countries since sanctions were imposed in July 2022. Of this, nearly 30,000 cubic metres (just over a million cubic feet) – equivalent to 835 truckloads and valued at €87 million – has reached Estonia, the NGO reported.
All EU states likely receive illegal timber
“The imports are now at some of the highest levels ever seen. Over 700 cubic metres (25,000 cubic feet) are arriving at EU ports and borders every day, equivalent to 20 large lorries or shipping containers. All 27 EU member states receive likely illegal ply, with the largest volumes shipped to Poland, followed by Germany, Spain, Portugal, Italy and Estonia,” the NGO noted.
Long valued in construction for its physical properties, in recent years consumption of birch plywood in the US and Europe has skyrocketed. It is used in an increasing number of everyday products and has taken the interior design world by storm, with multiple social media influencers and design blogs recommending its use in kitchens and furniture.
Seven of the top ten Russian birch ply exporters are still supplying the EU, the investigation found. Two of these firms are linked to billionaire oligarchs who met with the Russian dictator, Vladimir Putin, on the day of the invasion of Ukraine.
“One, Alexei Mordashov, is on the EU’s sanctions list while the other, Vladimir Yevtushenkov, is the main shareholder of Russia’s largest logging firm. Belarusian state-owned firms are helping facilitate the trade and also selling banned wood products to the EU,” Earthsight’s investigation revealed.
Laundering through third countries
Timber contributes significantly to Russian GDP and exports. All forests are state owned. The military even directly controls and profits from forests that cover more than one and a half times the size of Belgium.
To hide the trade, Russian firms told the NGO they launder the ply via third countries, often Kazakhstan or Turkey. Most flows through China, where firms recorded by Earthsight were the most brazen about sanctions busting. Trade statistics and customs records examined by the NGO show the business is booming.
“Several EU firms admitted buying illegal Russian plywood in covert recordings. Although these firms are traders, selling the ply on to others, the investigation also names several prominent EU customers of firms which admitted laundering Russian plywood.”
“One such customer is the world’s largest manufacturer of artificial climbing walls and supplier for qualifying rounds for the 2024 Paris Olympics, Bulgarian firm Walltopia,” the NGO asserted.
“Another customer is Estonian firm Technomar and Adrem, which supplies flooring to the Radisson, Hilton and Marriott hotel chains. Others include Werxal in Poland, which supplies furniture retailer Black Red White, and a Bulgarian toy manufacturer Komfort, which claims to supply some of Europe’s biggest wooden toy companies.”
Enforcement sporadic and insufficient
The NGO added that Technomar denied any wrongdoing when asked for a comment.
“Since early 2023, Earthsight has been sharing its findings with authorities across the EU, but has received little response. Enforcement has remained sporadic and is insufficient to deter illegal imports, with the trade now booming.”
Brussels shares the blame for having failed to coordinate national enforcement, Earthsight said, calling for greater leadership from the European Commission. The NGO is also calling for timber sanctions to be amended to include goods made with Russian timber in third countries, making enforcement easier.
Earthsight is a UK-based non-profit organisation that uses in-depth investigations to expose environmental and social crime, injustice and the links to global consumption.
