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The global lumber market worsened due to Ukraine's war and western sanctions
Posted on September 12, 2022 |
- The exports of forest products from Russia, and Belarus, lowered due to the war in Ukraine, which were valued at $17 billion in 2021.
- The Russian forest industry will struggle to source parts, equipment, and finance.
- The disruption in trade impacted global markets because the three countries (Belarus, Russia, and Ukraine) accounted for 25% of worldwide lumber shipments last year.
- Russian and Belarusian companies are having problems in making financial transactions and securing credit due to the change in the title of their forest products to “conflict timber.”
- The label “conflict timber”, restricts exports of Russian lumber to furniture manufacturers in China which export authorized products to Europe and North America.