Estonia’s Trade Associations Seek Tree Felling Relief During Russia–Ukraine War

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.”

“The fastest and most effective way to alleviate the situation would be to relax restrictions on the use of domestic resources, especially timber, which needs to be done immediately,” representatives of employers and unions emphasized.

The organizations point out that wood is used, in addition to the forestry and timber sector, in construction, furniture manufacturing, and district heating, meaning that the raw material deficit goes beyond a single sector. For example, shortages of wood chips and biomass force district heating plants to use Russian gas or compete with the local timber industry for resources to make sure people have heat. This would deepen the effects of the crisis for industry and result in a considerable heating price advance, the press release holds.

On Tuesday (3-15-22), the Ministry of Economic Affairs and Communications said that the Minister of Foreign Trade and IT Andres Sutt made a proposal to the Ministry of the Environment for temporarily increasing felling volumes to alleviate raw materials shortage caused by Russia’s war on Ukraine and the resulting sanctions and uncertainty.

In a press release, Sutt said that Russia’s aggression has created a raw materials shortage and hiked energy prices that affects the everyday operation and competitiveness of companies.

“In a situation where we are short on materials, we can support our companies by temporarily boosting the use of local resources,” Sutt said. “One such resource is timber, and temporarily boosting felling volumes would help cover the needs of the timber, furniture, and construction sectors, ensure continued competitive ability of the forestry and timber sector, and alleviate the effects of the crisis.”

The forestry and timber industry exports ca 900,000 cubic meters of sawn timber and imports ca 1,1 million cubic meters from Russia and Belarus. “Because wood products’ exports and imports are different, it would be insensible to try and compensate for imports shortage at the expense of export,” the minister explained.

Sutt emphasized that even though the green turn and environmentally conscious management are key looking to the future, temporarily relaxing environmental targets would help the Estonian economy to weather the crisis more successfully without harming long-term goals.

“That is why we are asking the environment minister to review current felling volumes and forestry restrictions to support Estonian forestry and timber companies,” the minister wrote, adding that nesting season restrictions should also be reviewed, and the Estonian Forestry and Timber Industry Association involved in the process.