As of 31 December 2021, the net asset value of the Russian operations was Euro 687 million.
Russian invasion of Ukraine
Raute has started a controlled shutdown of existing agreements with those Russian customers that are not under sanctions. The Company’s order book on March 31, 2022 for Russian customers was Euro 78 million.
Dramatic reduction in exports of forest products from Russia, Belarus, and Ukraine is one immediate impact of Ukraine-Russia conflict. The disruption in trade has significantly impacted global markets since the three countries accounted for nearly 25% of worldwide lumber trade last year.
Russia has been the world’s largest market for CTL machines, accounting for 20% of Ponsse’s net sales in 2021. Its Russian subsidiary OOO Ponsse has been the largest business branch of the Ponsse Group.
Stora Enso has entered into an agreement to divest its two sawmills in Russia. The Company’s Nebolchi and Impilahti sawmills will be divested to local management. In addition, the divestment includes Stora Enso’s Russian forest operation which through its harvesting supplies wood to the sawmills.
In 2022, Russia's losses due to the ban on the supply of wood products to Europe may exceed $2 billion.
Huhtamaki has four manufacturing units in Russia, employing approximately 700 people.
In March, the PEFC and FSC certification organizations decided to revoke trade certificates for all products made from Russian wood, which was now considered 'conflict timber'.
As stated in the statement of the employees of the FSC office in Russia, the new certification system "Forest Etalon" will allow preserving all the best that has been accumulated over the years of FSC's work in Russia. If FSC International activates the Russian FSC FM/CoC and CoC certificates again, the temporary schem...
Lumber trade flows changed almost instantly due to Russia-Ukraine crisis. Trade sanctions and restrictions in financial transactions by Europe, North America, and major markets in Asia halted shipments from Russia and Belarus. In addition, exports from Ukraine were also disrupted.
Russia was the third-largest source of U.S. hardwood plywood imports in 2021, exceeding 567 million square feet worth more than $334 million.
Koskisen has decided to discontinue its operations in Russia. The company will run down its Russian’s sawing operations and stop importing sawn goods and logs from Russia.
International Paper announced its intention to explore strategic options, including the possible sale, of its 50% ownership interest in Ilim Group, Russia.
The ban will affect the countries from 'unfriendly' states list recently released by Russia.
Due to the current supply chain disruption and the uncertainty of the financial and economic situation, Komatsu has decided to suspend shipments to Russia for the time being.
Because of the association of the forest sector in Russia and Belarus with armed invasion, no FSC-certified material or controlled wood from these countries will be permitted to be traded, said FSC.
UPM continues to provide humanitarian aid and material support in Ukraine in order to help those suffering from the war.
BSW Group has made the immediate decision to stop purchasing any raw material which originates from Russia. Material originating from Russia accounts for less than 1% of the total amount of raw material coming into the UK operations of BSW Group member businesses, BSW Timber Solutions and Bayram Timber. Now that BSW Ti...
Drax has ceased the supply of a very small percentage of Russian biomass used at its power station in Yorkshire to generate renewable electricity and is working with its suppliers and customers to identify any further links to Russia.
The operations of Metsä Group's only production unit in Russia, the Svir sawmill, have been suspended. Wood procurement in Russia for the Svir sawmill and imports to Metsä Group’s Finnish and Swedish mills has also been discontinued.