<\/p>\n
Russian birch plywood, banned in the European Union, continues to enter European markets under a Georgian label. A company based in Rustavi, established in 2022, has become a conduit for Russian wood products, effectively sidestepping EU sanctions imposed after Russia\u2019s invasion of Ukraine.<\/p>\n
An investigation by iFact Georgia reveals how a company called Palati-2022, established in Rustavi in 2022, has become a conduit for Russian wood products, sidestepping EU sanctions imposed after Russia\u2019s invasion of Ukraine.<\/p>\n
Trade data shows that between 2023 and 2025, Georgia imported roughly $45 million worth of birch products from Russia, while sourcing only $200,000 from all other countries combined. The raw materials were processed domestically and exported as finished plywood carrying a \u201cMade in Georgia\u201d label. European buyers received nearly $29 million of this plywood during the same period.<\/p>\n
The exports exploit a technical loophole. Palati-2022 holds \u201cauthorized exporter\u201d status, allowing it to self-certify origin documents. In test purchases, the company\u2019s staff confirmed they could prepare documents that omitted any reference to Russia. Investigators traced Palati-labeled shipments in Czech warehouses and cross-checked trade data across seven international databases, finding a surge of Georgian plywood exports to 16 European countries, including Slovenia, Portugal, Poland, and Greece. Palati itself reports that all of its production is exported, primarily to the EU, with some shipments to the United States.<\/p>\n
Ownership links add further complexity. Palati\u2019s founders are connected to Citadel, another Georgian importer of Russian birch, and to an Indonesian company with hidden beneficiaries, forming a network that channels Russian wood through Georgia into Europe. Neither Palati, Citadel, nor Georgia\u2019s Revenue Service responded to requests for comment from iFact.<\/p>\n
The operation highlights how EU sanctions can be circumvented through relabeling, exposing European manufacturers to competition from products that appear compliant but are sourced from sanctioned Russian forests. For Georgia, the practice risks undermining trust in its trade system and international credibility, while for Russia it demonstrates the persistence of sanctioned industries in profiting despite restrictions.<\/p>\n
The investigation was conducted by iFact Georgia, which used a combination of fieldwork, trade data analysis, and verification through European warehouses to document the scheme.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":96929,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[4428,3256,3311],"class_list":["post-96928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","tag-birch-plywood","tag-plywood","tag-russia","topic-wood-products","topic-wood-based-panels","area-europe","area-global","area-russia"],"acf":[],"yoast_head":"\n