Investigators at UK-based non-profit, Earthsight, have uncovered a booming trade in illegal Russian timber stretching throughout Europe and breaching war sanctions.
Article continues below
The investigation ‘Blood-stained birch: exposing the EU trade in Russian conflict ply,’ 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.
Posing as buyers over a 9 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 UK-based NGO estimates that more than 500,000 cubic metres of blood timber, with a retail value of over 1.5 billion Euros, has flowed from Russia through third countries and into the EU since sanctions were imposed in July 2022.
The imports are now at some of the highest levels ever seen.
Over 700 cubic metres 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.
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 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.
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. Earthsight did not investigate the precise origin of Russian timber entering Europe.
To hide the trade, Russian firms told Earthsight 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 Earthsight 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.
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.
Customers also include Spanish wholesaler Forest Trafic and Italian flooring firm Castellana Legnami.
It is not known whether they have purchased Russian wood, and there is no evidence these firms have knowingly breached sanctions. But at a minimum, the findings suggest they should be being much more careful about who they do business with.
Walltopia, Werxal and Black Red White did not respond to requests for comment on Earthsight's findings. Technomar, Komfort, Forest Trafic and Castellana Legnami denied any wrongdoing. ■