Japan emerges as the number one market for Russian timber

Large amounts of lumber and timber products are now crossing Russian borders, with Japan being one of the few Western countries not imposing sanctions on Putin-aligned producers.

In April, Japan imported more than 71,700 cubic metres of lumber from Russia’s Far East. This is a 43% increase from last year. As a result, Russia has become Japan’s most important source for lumber imports.

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Recent data from the Japanese Ministry of Finance indicates that Japan, which ranks as the world’s fourth largest importer of timber, imported 343,700 cubic meters of lumber in April 2023. This marks a significant increase of 73% compared to the same month last year. The majority of these imports originated from Russia, while other notable suppliers included Sweden (71,700 cubic meters), Canada (67,800 cubic meters), and Finland (62,100 cubic meters).

In a notable contrast to many Western nations, the Japanese government has opted not to impose sanctions on Russian products, including lumber, pulp, and glulam, despite the ongoing geopolitical tensions. Recently, Vladimir Putin held a meeting with Akie Abe, the widow of former Prime Minister Shinzo Abe, commemorating a diplomatic relationship that witnessed her late husband engaging with Putin on 27 occasions, all aimed at fostering harmonious relations between Japan and Russia.

During their meeting, Putin reflected on Abe’s efforts, stating, “We remember his contribution to developing Russian-Japanese cooperation. I know his dream—and he pursued it earnestly—was concluding a peace treaty between our nations. We made significant progress together on this path. The current situation differs; we will not address that aspect today.” This exchange underscores the complexities and historical ties that continue to shape relations between the two neighbours.

Japan, similar to the United States and Australia, is implementing notably lenient compliance measures regarding Russian timber imports. Unlike the United Kingdom, the European Union, and over 130 global environmental non-governmental organisations (ENGOs), which have collectively imposed a comprehensive ban on all timber imports following a formal request from the Ukrainian Parliament urging “friendly countries” to sanction Russian timber, Japan has yet to take decisive action.

In a significant development last year, Wood Central reported that two prominent organisations—the European Organisation of the Sawmill Industry (EOS) and the European Confederation of Woodworking Industries (CEI-Bois)—jointly sent an open letter to Valdis Dombrovskis, the Executive Vice-President of the European Commission and the Commissioner for Trade. In this letter, they strongly urged the European Union to pressure Japan into implementing a total ban on Russian timber imports.

The organisations emphasised that a unified effort to persuade Japan to cease its imports of Russian lumber would be a crucial move in further weakening the Russian economy and undermining its military capabilities. They articulated the necessity for a coordinated and coherent trade posture among allies in response to Russia’s unprovoked and unjustified invasion of Ukraine. This collaborative approach, they argued, is essential for effectively imposing sanctions and holding Russia accountable for its actions on the global stage.

Until 2021, the European Union was a major importer of wood products from Russia and Belarus, surpassing the quantities that Japan currently imports, even when considering the larger population and economy of the EU. This information highlights the significant shift in trade dynamics that has followed geopolitical events.

Recent reports indicate that since June 2022, over €1.5 billion worth of Russian timber has been smuggled into the European Union, involving all 27 member states. This illegal activity has raised concerns over a ‘blood trade’ in timber, with approximately 500,000 cubic meters entering Europe, undermining the intended impact of sanctions against Russia. The situation has sparked discussions about the industry’s ability to adapt, with some months showing a notable reduction in Russian wood imports.