Birch wood from Russia is being supplied to the European Union in circumvention of sanctions, according to an investigation by the German broadcaster SWR. The raw materials are routed through China, where they are relabeled. Of particular note, journalists found an offer to purchase Russian plywood from a Chinese subsidiary of the German-Swiss toy manufacturer Hape International.
In response, Hape’s German management stated that it “cannot comment on legally independent subsidiaries.” Shortly afterward, all offers to sell Russian timber from the company affiliated with Hape International were removed. Nevertheless, according to customs data, the firm has imported several thousand tons of Russian timber into China over the past two years.
SWR also notes a surge in timber exports from China to the EU after the start of Russia's full-scale invasion of Ukraine — despite the introduction of sanctions against Russia. Initially, shipments went mainly through Poland, but the country’s authorities took measures to curb them. As a result, wood imports through Spain and Portugal grew many times over.
Investigators note that the export of birch wood brings Russia hundreds of millions of dollars in revenue annually. SWR identifies Alexei Mordashov, co-owner of Severstal, as the main beneficiary of this trade. Mordashov owns the timber company Sveza, which the Russian arm of Forbes calls the world's largest plywood producer.
Tara Ganesh, a representative of the environmental organization Earthsight, told SWR that “around one billion euros’ worth of sanctioned timber enters the EU each year.”