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<\/span>The wood market in Poland is experiencing a significant surge in the supply of raw materials from Russia and Belarus, primarily entering through Kazakhstan and Kyrgyzstan. This development has emerged despite the 2022 sanctions imposed on wood imports from Russia and Belarus. Notably, instead of a blockade, there has been a substantial increase in imports, reaching staggering percentages.<\/p>\n Belarus, boasting vast forests covering 39% of its land area, holds a pivotal position as a wood producer in Europe. The sanctions levied on Belarusian and Russian timber imports into Poland were anticipated to be profoundly detrimental to the country's eastern neighbor. However, an unforeseen trend is manifesting, defying these constraints.<\/p>\n Sanctions evasion by Russia and Belarus<\/strong><\/p>\n Grzegorz Wojciechowski, a prominent member of the PiS party, raised a pertinent interpellation on this matter. The response he garnered has illuminated a disconcerting picture of the present scenario.<\/p>\n Reports are increasingly indicating the circumvention of sanctions by unscrupulous entities in the wood trade, enabling products from Russia and Belarus to infiltrate the Polish market. Furthermore, due to a lack of rigorous oversight within Poland, these products have managed to permeate the entirety of the European Union. A notable case in point is the surge in timber imports from Kazakhstan, which, surprisingly, emerged as a significant player in the market after the imposition of sanctions on Russia and Belarus, as highlighted by MP Wojciechowski.<\/p>\n The National Revenue Administration conducted 4,888 border checks, revealing irregularities in 61 instances. Additionally, the Customs and Tax Service (KAS) lodged 62 reports with law enforcement agencies for sanctions evasion, with 2 cases pertaining to misclassification of goods.<\/p>\n According to KAS's official response, timber from Belarus and Russia primarily enters Poland through Kazakhstan.<\/p>\n Rigorous inspection and collaborative efforts<\/strong><\/p>\n Bartosz Zbaraszczuk, Secretary of State at the Ministry of Finance and head of the National Revenue Administration, addressing MP Wojciechowski's inquiry, affirmed that the issue of evading sanctions on wood and wood products from Russia and Belarus is under constant vigilance. In the face of heightened risks of irregularities, including elevated imports from countries like Kazakhstan, suggesting potential sanctions circumvention, customs officials are directed to conduct additional analyses. Subsequent to these analyses, customs inspections may be initiated at the businesses' premises to ascertain the true origin of the imported timber or wood products.<\/p>\n Baraszczuk further emphasized that the National Tax Administration has undertaken measures to enhance control mechanisms concerning wood and wood products. In instances involving sanctions, the products' origin is determined based on non-preferential origin rules. The non-preferential origin of products authorized for trading in the European Union adheres to EU regulations and is substantiated by information and documentation provided by importers.<\/p>\n KAS has established a collaborative partnership with an accredited laboratory, proficient in testing both raw wood and wood-derived products. This partnership aims to identify the country (geographical region) of wood origin, a vital factor, especially in the case of processed products that share sanctions with raw wood. In cases where suspicions arise about the real origin (source) of the raw material being Russia or Belarus, wood and wood products from nations other than Russia are subject to laboratory tests. These tests conclusively determine whether the goods are subject to sanctions.<\/p>\n Unprecedented imports surge<\/strong><\/p>\n The gravity of the situation becomes more pronounced when considering the recent past. In March 2023, MP Hanna Gill-Pi\u0105tek presented an interpellation addressing the breach of sanctions concerning wood imports. The inquiry was prompted by a report from the frontstory.pl platform, revealing that in 2021, the EU received timber worth PLN 387,000 EUR from Kazakhstan. Astonishingly, from January to October 2022, this figure surged to a staggering EUR 22.5 million, with the majority (95%) entering the market following the imposition of sanctions on Belarusian timber. In response, the National Revenue Administration reported submitting 80 notifications to the prosecutor's office.<\/p>\n Although irregularities have lessened recently, substantial imports from Kazakhstan continue unabated.<\/p>\n During 2022, wood imports from Kazakhstan soared by an astonishing 9,926.8% compared to the previous year. As estimated by the European Commission, the value of these imports amounted to EUR 39 million.<\/p>\n Another nation displaying a remarkable uptick in wood exports is Kyrgyzstan. In 2022, the value of wood imported from Kyrgyzstan totaled EUR 14 million, marking a momentous increase of 1,104,157% compared to the previous year.<\/p>\n Impact on Polish wood industry<\/strong><\/p>\n The influx of foreign raw materials has substantially affected the Polish wood market, particularly in light of disagreements between entrepreneurs and PGL Lasy Polskie regarding commercial policies. Amid the challenging market conditions and an impasse with PGL State Forests concerning wood sales regulations, pricing, and FSC certification, representatives of wood processing businesses addressed an open letter to the Prime Minister on behalf of the Polish wood industry.<\/p>\n The present circumstances are unparalleled, with major factories halting their production lines due to the inability to vend their products\u2014a situation never before witnessed in their extensive history. The open letter paints a grim picture, asserting that a key factor in this crisis is the dwindling competitiveness of their products, primarily due to the exorbitant price of raw wood sourced from state forests. This price dictates production costs, rendering Polish wood the most expensive in Europe. This is further exacerbated by the systematic deprivation of FSC certification, a critical requirement for many companies to sustain exports.<\/p>\n According to the entrepreneurs' communication to the Prime Minister, the past six months have seen a 12% decrease in paper and cardboard production, a 25% drop in pallets, a 30% decline in wood-based panels and furniture, a 35% decrease in floors, windows, and doors, a 29-43% reduction in sawn timber (depending on variants), and a substantial 45% decline in small garden architecture.<\/p>\n The future of the Polish wood industry is fraught with challenges, stemming from the complex interplay of sanctions evasion, import surges from unexpected sources, and industry-wide disruptions. The need for robust countermeasures and collaborative strategies is more pressing than ever as stakeholders navigate this unprecedented landscape.<\/p>","protected":false},"excerpt":{"rendered":" The wood market in Poland is experiencing a significant surge in the supply of raw materials from Russia and Belarus, primarily entering through Kazakhstan and Kyrgyzstan. This development has emerged despite the 2022 sanctions imposed on wood imports from Russia … Continue reading