Russia earns billions of euros by exporting timber to EU in violation of sanctions, Earthsight investigation reveals
Pravda Ukraine
Russian companies have supplied over €1.5 billion worth of timber to the EU since the imposition of sanctions, using third countries to bypass restrictions.
Source: an investigation by the British non-profit organisation Earthsight
Details: Earthsight investigators, posing as buyers, recorded testimonies from traders who openly acknowledged the illegality of their activities, referring to the established methods of circumventing sanctions as a “gold mine”.
The investigation found that seven of the ten largest Russian exporters of birch plywood continue to supply products to the EU despite sanctions imposed in July 2022. The organisation estimates that over 500,000 cubic metres of timber, worth more than €1.5 billion, have been exported from Russia to the EU via third countries, including China, Kazakhstan and Türkiye.
An analysis of trade statistics and customs records reveals that the business of these companies is thriving. For instance, imports recently hit a record high, with over 700 cubic metres of timber arriving at EU ports every day. Moreover, all 27 EU member states are likely receiving illegal plywood, with Poland accounting for the largest share of shipments, followed by Germany, Spain, Portugal, Italy and Estonia.
Investigators have also found that two of the seven Russian companies are linked to oligarchs who met with Kremlin ruler Vladimir Putin on the day of Russia’s invasion of Ukraine. One of them, Alexei Mordashov, is on the EU sanctions list. Another, Vladimir Yevtushenkov, is the main shareholder of Russia’s largest logging company.
In addition, Belarusian state-owned companies are also involved in illegal timber trade in the EU.
The investigation also revealed that several European companies may be involved in purchasing illegal Russian plywood through traders.
Among the buyers of Russian timber are Bulgarian company Walltopia, a supplier of climbing walls for the 2024 Olympic Games, Estonian firm Technomar & Adrem, which works with Hilton and Marriott chains, Polish company Werxal, which supplies furniture for Black Red White, and Bulgarian toy manufacturer Komfort. The list also includes Spanish company Forest Trafic and Italian firm Castellana Legnami.
Background: EU countries are reportedly being supplied with furniture and timber produced using the forced labour of Belarusian convicts, including political prisoners.
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