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 (the European Confederation of Woodworking Industries) and EOS (the European Organization of the Sawmill Industry) 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.

At the same time, the European timber industry understands the decisions on a trade ban between Europe and Belarus as informed by the Council Regulation (EU) 2022/355 which introduces a ban on all wood products from Belarus in response to the ongoing war in Ukraine. The industry foresees those similar measures will be applied to Russian wood products.

The groups acknowledged that the trade ban will cause serious consequences for European market supply. According to official statistics, slightly less than 10% of the sawn softwood consumed in Europe in 2021 originated from Russia, Belarus, and Ukraine. In the hardwood sector, oak goods originating from Ukraine made up a significant quantity. Shortages are therefore expected.

CEI Bois and EOS are now working closely with the EU institutions and national European governments to identify sustainable and efficient mitigating measures that could increase self-reliance, help reduce critical shortages, increase harvesting rate, ensure security of logs supply, and seek to mobilize existing wood resources to fill the supply gap created by these necessary trade sanctions.

The wood product trade ban will negatively impact several critical industrial supply chains, for example, food and medicine, which are logistically based on wooden pallets. Many wood-based construction materials, such as birch plywood and sawn timber, will be very hard hit, which in turn could hamper the EU’s Green Deal push to decarbonize the built environment.

In a statement Silvia Melegari, secretary-general of CEI-Bois and EOS, said, “Beyond the human tragedy that this conflict is causing, the European Timber Industry will be negatively affected by a shortage of wood products,” said Silvia Melegari, secretary-general of CEI-Bois and EOS. “Although companies are already working in order to cope with the current situation, it is undeniable that our sector will need immediate interventions by national governments and European institutions on how to prevent a critical logs shortage. The European wood industry hopes for a rapid and peaceful resolution to the ongoing conflict in Ukraine.”