Discover the possibilities of sustainable management. Read more

Wood and paper products to and from Russia and Belarus

Updated on 31 March 2023

Since Russia's invasion of Ukraine, in which Belarus is also involved, there has been great concern about possible links between timber harvesting companies and governments. Both the European Union and FSC® and PEFC have taken measures to prevent the sale of wood and paper products from helping to finance the war in Ukraine.

Withdrawal of FSC FM certificates Russia

By 8 April 2023, all Forest Management (FM) certificates issued by FSC in Russia have been withdrawn. This decision was taken by FSC as a result of these certificates being suspended after the 2022 invasion. FSC's accreditation body (ASI) has indicated that they can no longer carry out verification activities in Russia due to integrity risks and restricted access due to sanctions. As a result, the accreditations of the relevant certification bodies will be withdrawn with the result that certificates issued by these certification bodies will also be withdrawn. Click here for the official notification from FSC International.

The current situation is now as follows: all FM and CoC certificates in Russia and Belarus have been withdrawn by FSC as of 8 April 2023.

Afbeelding 2

Consequences for FSC or PEFC certified timber

Both FSC and PEFC have indicated that there is a risk that the sale of timber (products) could help finance the war in Ukraine. Both labels have therefore announced the following measures:

  1. All FSC Chain of Custody certificates from suppliers in Belarus and Russia are suspended until further notice as of 8 April 2022. This means that all timber leaving a supplier's site in Russia and Belarus after 7 April is no longer FSC certified. There is a possibility of an additional audit before 8 April 2022 at the supplier's premises in Russia in order to identify the product stock for delivery and the corresponding sales invoices. This allows customers outside Russia, after the issuing of verification statements by the certification body, to use the respective material as certified input, even if it is not possible to ship the materials in time. However, the wood must have been invoiced by the supplier before 8 April;
  2. All timber from Belarus and Russia is considered by PEFC as so-called conflict timber from 2 March 2022 onwards. This means that timber from Belarus and Russia which is received after 2 March 2022 (read: delivery date after 2 March 2022) cannot be sold as PEFC certified.

NOTE: PEFC International has not yet answered our question as to whether this only applies to timber received directly from a supplier in Belarus or Russia after 2 March 2022, or whether it also applies to timber exported from those countries before that date. As soon as we have an answer, we will report it on this website. Until then, we recommend that you follow the precautionary principle and not sell as PEFC certified any timber received after 2 March 2022.

 

Click on the following links for more information on the FSC and PEFC positions.

 

Afbeelding 3

Import and export ban on wood and paper products Belarus and Russia

The Council of the European Union has taken measures because of the war in Ukraine. In short, the measures are as follows:

  • From 2 March 2022, the import of wood products with codes 44" from Belarus into the European Union will be prohibited;
  • From 9 April 2022, the import of wood and paper products with codes 44", 4705", 4804" and 9403" from Russia to the European Union will be prohibited;
  • From 9 April 2022, the export of a variety of wood and paper products with codes 44", 45", 47", 48" and 94" from the European Union to Russia will be prohibited.

For Belarus, the following text from the Council Regulation (EU) 2022/355 of 2 March 2022 applies:

  1. It shall be prohibited:
    1. to import, directly or indirectly, wood products as listed in Annex X into the Union if they:
      1. originate in Belarus; or
      2. have been exported from Belarus;
    2. to purchase, directly or indirectly, wood products as listed in Annex X which are located in or which originated in Belarus;
    3. to transport wood products as listed in Annex X if they originated in Belarus or are being exported from Belarus to any other country;
    4. to provide, directly or indirectly, technical assistance, brokering services, financing or financial assistance, including financial derivatives, as well as insurance and re-insurance, related to the prohibitions in points (a), (b) and (c).
  2. The prohibitions in paragraph 1 shall be without prejudice to the execution until 4 June 2022 of contracts concluded before 2 March 2022, or ancillary contracts necessary for the execution of such contracts.

The latter (paragraph 2) means that all contracts concluded before 2 March 2022 may still be performed until 4 June 2022 at the latest. Thereafter, those contracts will not be allowed to be performed. Annex X of the Regulation covers all wood products with codes 44", see also the Combined Nomenclature of Customs.

 

For Russia, the following texts from Council Regulation (EU) 2014/833 of 31 July 2014 with the supplements from the Official Journal of the EU of 8 April 2022 apply.

 

Article 3i (ban on import of goods from Russia into the European Union):

  1. It shall be prohibited to purchase, import, or transfer, directly or indirectly, goods which generate significant revenues for Russia thereby enabling its actions destabilising the situation in Ukraine, as listed in Annex XXI into the Union if they originate in Russia or are exported from Russia.
  2. It shall be prohibited to:
    1. provide technical assistance, brokering services or other services related to the goods and technology referred to in paragraph 1 and to the provision, manufacture, maintenance and use of those goods and technology, directly or indirectly in relation to the prohibition in paragraph 1;
    2. provide financing or financial assistance related to the goods and technology referred to in paragraph 1 for any purchase, import or transfer of those goods and technology, or for the provision of related technical assistance, brokering services or other services, directly or indirectly in relation to the prohibition in paragraph 1.
  3. The prohibitions in paragraphs 1 and 2 shall not apply to the execution until 10 July 2022 of contracts concluded before 9 April 2022, or ancillary contracts necessary for the execution of such contracts.

Article 3k (ban on export of goods from the European Union to Russia):

  1. It shall be prohibited to sell, supply, transfer or export, directly or indirectly, goods which could contribute in particular to the enhancement of Russian industrial capacities as listed in Annex XXIII, to any natural or legal person, entity or body in Russia or for use in Russia.
  2. It shall be prohibited to:
    1. provide technical assistance, brokering services or other services related to the goods and technology referred to in paragraph 1 and to the provision, manufacture, maintenance and use of those goods and technology, directly or indirectly to any natural or legal person, entity or body in Russia or for use in Russia;
    2. provide financing or financial assistance related to the goods and technology referred to in paragraph 1 for any sale, supply, transfer or export of those goods and technology, or for the provision of related technical assistance, brokering services or other services, directly or indirectly to any natural or legal person, entity or body in Russia, or for use in Russia.
  3. The prohibitions in paragraph 1 and 2 shall not apply to the execution until 10 July 2022 of contracts concluded before 9 April 2022 or ancillary contracts necessary for the execution of such contracts.

The last points (3) mean that all contracts concluded before 9 April 2022 may still be performed until 10 July 2022 at the latest. After that, those contracts will no longer be allowed to be executed. See the EU Official Journal of 8 April 2022 for a full list of the goods concerned in Annexes XXI and XXIII.

EU sanctions against persons and organisations

In addition to the export ban on wood (products) from Belarus, there are also sanctions imposed by the European Union against persons and organisations. Russian, Belarusian and Ukrainian persons can be on the sanctions list. A company or a bank can also appear on the list. It is forbidden to do business with these persons, companies or banks. 

The EU updates the sanctions list from time to time. To view the most up-to-date list of persons, groups and entities subject to EU sanctions, you need to create an account. Tip: to search this list for companies or persons, use CTRL+F and then the name. Please note the spelling of the name.

Banks 
In principle, transactions between companies are permitted, provided that the banks are not excluded from SWIFT. Before doing business with a country that is subject to sanctions, it is advisable to contact your bank and/or insurance company, so that you are not surprised by a block on your transaction afterwards.