Sanctions on Russia for Its Invasion of Ukraine Set to Negatively Impact Australia’s Construction Industry

With supplies of key laminated veneered lumber (LVL) and engineered wood products (EWPs) imported from Russia and Belarus, which accounted for 40-50% of these construction products, no longer available due to sanctions imposed on both countries for Russia’s invasion of Ukraine, Australia’s tight timber markets are now facing a severe shortfall of products.

The shortage is already starting to impact concrete constructions for multi residential, high-rise, commercial buildings, and some civil works, as well as i-joist beams and timber flooring systems.

Previously, Australia imported LVL and EWP from EU countries. However, the EU has also placed sanctions, restrictions, and tariffs on Russian and Belarusian timbers, and therefore are now using their timber supplies and production capabilities to meet EU members’ internal needs.

This has prompted Australian timber industry representatives from the timber import sector to schedule and hold urgent talks with the federal government in Canberra next week to discuss potential solutions.