The Finnish forest industry had already prepared for export restrictions.<\/p>\n
\"The situation is very unclear,\" commented Timo Tolonen , the Finnish expert on the Finnish Forest Industry Association, on the effects of the Russian attack on the Finnish forest industry.<\/p>\n
\"Speculation on the effects of sanctions and counter-sanctions is premature.\"<\/p>\n
Imports of pulpwood and wood chips from Russia to Finland amount to less than ten million cubic meters, some of which goes to energy. In the second year, the domestic wood industry used 67 million cubic meters of wood, and Russian wood accounted for 12 percent.<\/p>\n
\"The threat of export restrictions in the forest industry has already been recognized before the situation escalates, so contingency plans have been drawn up.\"<\/p>\n
Measured by value, four per cent of Finland's forest industry exports went to Russia in 2020.<\/p>\n
Russia has a Finnish-owned forest industry. Mets\u00e4 Fiber has a large sawmill in Syv\u00e4ri, Stora Enso has two smaller sawmills and three corrugated board mills, UPM has a plywood mill and label paper distribution units.<\/p>\n
The sawmill world is becoming increasingly difficult to predict<\/strong><\/p>\n If we look at Russia's attack on Ukraine from the point of view of lumber, then three of the world's ten largest lumber exporters are involved.<\/p>\n Russia is the largest exporter of softwood lumber and the third largest producer, although most of its exports go to China. Belarus and Ukraine are not big producers, but in a few years and in silence, they have risen to the top ten, ranking seven and ten.<\/p>\n As the war hampers production and closes the Black Sea export ports, it also makes room in the export market that some others are filling. There will be even more space if sanctions stop Russian sawn timber exports to the west.<\/p>\n Plenty of unexported lumber and a collapsed ruble exchange rate is a combination from which China will take full advantage. For Finnish sawmills, the shrinking Chinese market may close completely due to falling prices and rising freight costs.<\/p>\n In any case, lumber is not such a big deal that sanctions are designed with lumber in mind. Russia has already decided to stop the export of softwood logs and fresh and heavy sawn timber.<\/p>","protected":false},"excerpt":{"rendered":" The Finnish forest industry had already prepared for export restrictions. “The situation is very unclear,” commented Timo Tolonen , the Finnish expert on the Finnish Forest Industry Association, on the effects of the Russian attack on the Finnish forest industry. … Continue reading