European Forestry Pulse #3 🌲

Hello,

Despite EU sanctions, laundered Russian timber continues flooding European markets through backdoor routes. Meanwhile, Finnish forest owners celebrate exceptional prices while Ireland counts massive storm losses.

Here's what's moving European forestry this week:

Despite EU sanctions imposed in April 2022 banning Russian and Belarusian timber imports, new analysis reveals that laundered wood continues to enter EU markets at alarming rates. Between February and April 2025 alone, EU countries imported suspect birch plywood worth over €273 million from third countries including China, Georgia, Kazakhstan, and Turkey.

Spain led imports followed by Portugal with €12 million, raising serious questions about supply chain integrity. The timber is being re-exported through countries that have dramatically increased their plywood exports to the EU since sanctions began, despite having minimal domestic production capacity. Environmental groups warn that these loopholes not only undermine sanctions but also threaten EUDR compliance, as operators cannot guarantee the true origin of their materials.

What this means for you: Your due diligence just got more complex. Any timber sourced through third countries now requires enhanced scrutiny. Document direct relationships with primary producers and consider requiring sworn origin declarations. The reputational and legal risks of accidentally trading conflict timber could devastate your business when EUDR enforcement begins. Source: Euractiv - Laundered Russian wood still enters EU

Finnish timber markets are experiencing a golden moment with July 2025 volumes surging 50% above five-year averages. Spruce logs hit €83 per cubic meter while pine neared €80, with delivery sales of pulpwood approaching €53/m³. Standing sales showed signs of price stabilization, suggesting the rally may be peaking. The surge reflects both strong domestic construction recovery and increased Chinese imports.

The takeaway: Nordic suppliers are capturing premium prices now—if you're buying Finnish timber, lock in Q4 contracts before prices potentially correct. Source: LesPromInform - Finnish timber trade sustains high prices

Storm Eowyn's January 2025 rampage through Ireland left unprecedented forest destruction in its wake, damaging 23,652 hectares with timber losses of approximately 10 million m³—2.3 times Ireland's normal annual harvest. The damage assessment reveals the increasing vulnerability of European forests to extreme weather events, with Climate Research predicting such storms will increase 25% in frequency by 2030.

The takeaway: Storm damage on this scale will tighten timber supplies and spike prices across Northwestern Europe—review your windthrow insurance coverage immediately. Source: Irish Government - Storm Eowyn damage assessment

The European Commission's proposed 90% emission reduction target for 2040 includes a game-changing provision: allowing up to 140 million tonnes of CO₂ from international carbon credits starting in 2036. This could dramatically boost demand for high-quality forest carbon projects worldwide and potentially integrate domestic forest removals into the EU ETS after 2030. The proposal aims to address Europe's carbon credit shortage while maintaining strict quality standards.

The takeaway: Start positioning your forest carbon projects now—the 2036 market opening will create a gold rush for verified, high-quality credits. Source: Carbon Direct - EU 2040 climate target implications

The European Commission has launched the EUDR Information System for operators to begin testing Due Diligence Statement submissions. Two platforms are available: the live server for legal documents (https://eudr.webcloud.ec.europa.eu/tracesnt/) and a training platform for practice. Virtual training sessions continue throughout 2025, with the Commission urging early adoption despite the December 2025 enforcement delay.

The takeaway: Don't wait—create your account and run test submissions now to identify system issues before they become compliance failures. Source: European Commission - EUDR Information System launch

Sanctions compliance check: Review your last 10 plywood or lumber purchases from non-EU suppliers. Look for sudden supplier changes, price anomalies, or vague origin documentation. If you're buying through intermediaries in Turkey, Kazakhstan, or China, demand full chain-of-custody documentation back to the forest. Better to find issues now than during an EUDR audit.

Until Thursday!

Wish you all the best: Peter

P.S. What’s the biggest challenge you’re facing in forestry right now?
Hit reply and let me know — I read every message personally.

P. P. S. Know a forest professional who’s drowning in EUDR complexity or missing out on timber market shifts? Forward this issue or invite them to join!

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