Sanctions have caused a drop in timber exports from Russia

Russia exported only 2.6 million cubic meters of lumber from January to February this year, 23.5 percent less than last year’s two months. For the previous year, timber exports from Russia abroad decreased by 22 percent to 23.4 million cubic meters.

The drop in exports is linked to sanctions imposed after the beginning of Russia’s invasion of Ukraine. The European Union banned the purchase of timber, plywood, wood boards and pellets from Russia, with the restrictions coming into effect on July 10th. Russian producers could not divert volumes previously destined for Europe to other markets. China could have replaced the missing volumes, but due to its tightened coronavirus measures, it could not increase exports until 2022. Congested freight traffic in Eastern directions may further impede the export of lumber this year. Exports abroad are also hindered by a ban by the Russian government on transit through the Eurasian Economic Union (EAEU). As an asymmetric response, to stabilize the forestry sector, the Russian authorities are proposing mass construction of wooden multi-storey buildings (up to nine floors) within Russia.