The embargo decreed by the Europeans – which concerns raw timber, planed timber and derived products – caused Russian timber exports to fall by 20.8%. But the flows have not dried up. According to the Russian Forest Management Agency (Roslesinfork) the country has managed to maintain its exports to 89 destinations. Exports which concerned pine, spruce, larch and hardwoods such as oak. As Russia is one of the leading timber exporters, the Russian offensive and the sanctions it entailed have, however, shaken up commercial relations in the timber sector.
Before the sanctions, Estonia was a major consumer of Russian timber. In 2022, the country halved its purchases, like other states that applied the sanctions. On the other hand, the national forest agency says it has limited its losses thanks to its friendly countries. Roslesinforg also specifies that the drop in exports was also offset by the export of processed products with higher added value.
The Middle East, a very active buyer
Among the countries that have increased their trade with Russia are those in North Africa where domestic demand is very strong and where French timber flows have dried up in 2022. Another region where trade with Russia has surged especially the Middle East. In cumulative volume, North Africa and the Middle East imported 18% more in 2022 than in 2021.
The most active buyers were by far the United Arab Emirates (+83%) followed closely by Iraq (+75%) and Jordan (+45%). Iran increased its imports by 14%, Israel by 13%, Tunisia and Lebanon bought more than 10%.
However, China remains the most loyal customer of wood from Russian forests. The Middle Kingdom still receives more than half of Russian exports, even though these fell by 7% last year due to the slowdown in the Chinese economy.
Tension on oak supply
In 2022, before the outbreak of the war, Russia had also banned the export of logs to promote local industrial processing. China therefore had to reduce its imports of oak logs: from 200,000 m³ in 2021, they fell to 1,000 m³ in 2022. Part of Chinese needs therefore shifted to Europe, causing particular tension on prices, especially as oak production is unable to meet global demand.
« Same pressure observed on Douglas fir, a pine with remarkable mechanical properties whose prices are particularly highexplains Eric Toppan, deputy general manager of Fransylva, which represents French private forest owners. Despite these tensions, the increases noted last year for construction timber in the United States or in certain European countries have generally dissipated in recent months.
