A joint communique sent to Estonia’s Prime Minister Kaja Kallas from the Estonian Chamber of Commerce and Industry, the Estonian Employers’ Confederation, and the Trade Unions Confederation reads, “The war in Ukraine and the necessary sanctions it has caused have left Estonian companies short on materials that is mainly a risk for the forestry and timber sector and companies therein.”
News in international markets
Russia Bans Export Sales of Wood and Wood Products to “Unfriendly” Countries
According to the Ministry of Industry and Trade of Russia, Russia will ban the export of wood and wood products to countries from “unfriendly” states, including the U.S. and the EU countries, until the end of 2022. The ministry notes that the ban will ensure the needs in the domestic market for affordable raw wood.
E.U. Timber Industry Trade Groups Foresee Timber Shortages Due to Russia’s Invasion of Ukraine
A meeting of the main European trade bodies for the timber industry, CEI-Bois and EOS ended with the groups recognizing that Russia’s invasion of Ukraine poses a real threat to peace and security in Europe while direct consequences on the timber business should be expected.
Imminent Tightening of European Wood Supply Chain Due to Russia’s Invasion of Ukraine
In a statement, the European Federation of Wooden Pallets & Packaging Manufacturers (FEFPEB) expressed “its deep sympathies and support for the people of Ukraine” and noted that, as an organization, it supports sanctions against Russia for its invasion of Ukraine, as well as against Belarus due to its support of Russia.
FSC Announces No FSC-Certified Materials or Controlled Wood from Russia or Belarus Permitted to be Traded
On Tuesday (3-8-22,) the Forest Stewardship Council (FSC) announced that because of the association of the forest sector in Russia and Belarus with armed invasion, no FSC-certified materials or controlled wood from these countries will be permitted to be traded. The announcement says that FSC remains deeply concerned about Russia’s aggressive invasion.
PEFC Designates Wood From Russia and Belarus as “Conflict Timber” Not to Be Used in Any PEFC-Certified Products
Following a meeting of PEFC (Program for the Endorsement of Forest Certification) organization’s board last week, wood from Russia and Belarus have been designated as “conflict timber” and banned from use in all PEFC-certified products following the invasion of Ukraine.
Metsä Fibre to Discontinue Lumber Production at Kyrö, Finland Sawmill in Summer 2022
Metsä Fibre, part of Metsä Group, announced today (3-7-22) that it has started negotiations and plans to discontinue the lumber production in Kyrö, Finland in the summer of 2022. The annual production capacity of the Kyrö sawmill is approximately 230 thousand m3 pine lumber, and the annual wood consumption is approximately 450 thousand m3.
Environmental Groups Call for a Ban on the Use of Russian and Belarusian Timber
Over a 120 individual environmental rights groups have joined together and are calling for a ban on the use of Russian and Belarussian timber, in a direct response to Russia’s invasion of Ukraine. The groups note that most of the wood is being sold directly or indirectly to the United States, the European Union, the United Kingdom, Japan, and China.
Pfeifer Group Making Major Investment in Uelzen, Germany Mill
The Pfeifer Group, an Austrian-based wood processing company that manufactures timber products, is undertaking a massive expansion and modernization program at eight of their northern most locations. The projects are scheduled to be completed in 2024.
Freight Challenges Mounting for Moscow as the World’s Three Largest Container Ship Lines Suspend Cargo Shipments to and From Russia
The moves follow similar decisions already taken by Singapore-headquartered Ocean Network Express and Germany’s Hapag Lloyd (HLAG.DE), effectively cutting Russia off from the world’s leading container shipping companies and adding to freight challenges ahead.