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14
TRADE OF ILLEGAL TIMBER
The Russian forestry sector is highly dependent on exports. In 2014,
US$ 11.6 billion worth of Russian wood and wood products were
exported,
42
comprising 72 per cent of the total value of revenues
fromRussian exports.
43
In 2011, 68 per cent of sawn wood products
were exported to world markets. Cellulose exports comprised 85
per cent of the total amount produced (up 15 per cent from 2007).
Expensive woods, such as oak, ash, elm and linden, are
commonly used for furniture and flooring. As illustrated in
Figure 6, the value of Russian timber increases dramatically
from the time it is cut to when it is sold to the final consumer.
When harvested timber is smuggled the share of revenues to
local communities and the Russian budget can be as low as
zero. When this is the case, none of the profits from criminal
businesses are reinvested in improving the management of
old-growth forest ecosystems in Russia.
China and Finland are the main importers of Russian roundwood
(Figure7). In2012, Russiaexportedmore than30millionm³oftimber
to China; according to EIA experts, approximately 24millionm³ of
thiswas exported illegally. Russian timber comprises approximately
20 per cent of timber imports to China, including 21 per cent of
Chinese imports of roundwood – inferior only to New Zealand
(Figure 9). In 2012, China exported timber, ready-made furniture and
flooring worth US$ 20 billion: 33 per cent of which went to the
United States, 17 per cent to the EU, and 7 per cent to Japan.
x 14
x 43 / 3
x 67 / 1.6 x 200 / 3
15*
211
640
1,031
2,994***
Paid to
loggers
At Russian
export**
On border
markets in China
At Chinese
export
In U.S.
Showrooms
Graph by Manana Kurtubadze, GRID-Arendal, 2015.
Source: EIA, 2013
USD per m
³
x 43 / 3 increase from the initial and previous price
* Less than 1% of the final sale price.
** Illegal logging reduces the customs duties and total revenue of the
Russian forest industry. Starting at this point, Russia is not generating
income from its forests.
*** The cost of flooring sold in US retail chains.
17,731
19,045
20,914
Total export: 57,690
2012 2013 2014
2,248
750
608
279
CHINA
RUSSIA
34,962
FINLAND
2,185
15,243
SWEDEN
SOUTH KOREA
931
UZBEKISTAN
JAPAN
KAZAKHSTAN
GERMANY
104
LATVIA
89
POLAND
291
OTHER
COUNTRIES
Source: Russian customs data.
Graph by Manana Kurtubadze, GRID-Arendal, 2015.
Figure 7: Roundwood exports from Russia between 2012 and 2014
Figure 6: The value of oak along the supply chain