Australia timber industry says Russian wood is entering via sanctions loopholes

Australia's forest products industry says Russian-grown timber is still reaching the country through third countries, despite tariffs imposed after Russia's invasion of Ukraine. The Australian Forest Products Association says the material is being rerouted and processed abroad before entering Australia as products that do not attract the Russian-origin tariff. The group says the issue is affecting local producers in a market it describes as already depressed.

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Acting chief executive Richard Hyett said timber can be manufactured in another country or substantially transformed and then avoid the tariff. He said Russian timber can be sent to China, turned into laminated veneer lumber, and then exported to Australia without being treated as Russian-origin material. The association estimates that up to 100,000 cubic metres of timber containing Russian wood enters Australia each year, labelled as exports from other countries.

The industry group is calling for tariffs on any timber containing Russian material, as well as border checks on imports. It says Russian wood is also being routed through countries including China and Lithuania before reaching Australia. The association argues that the current rules leave room for products with Russian content to enter the market while avoiding the sanctions regime.

Australia imposed a 35% tariff on goods from Russia, including timber, after the invasion of Ukraine in 2022. The government has also imposed more than 1,800 sanctions on Russia and its supporters, according to a Department of Foreign Affairs and Trade spokesperson. The spokesperson said Australia remains steadfast in its support for Ukraine and its commitment to imposing costs on Russia, and said importers are expected to carry out due diligence on their supply chains.

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The dispute highlights a wider challenge for sanctions enforcement: tracing the origin of raw materials once they have been processed in another country. In this case, the concern is not only whether Russian timber is entering Australia, but whether the current tariff structure is broad enough to capture products made from Russian wood after further manufacturing. For local producers, the issue also has commercial implications because cheaper imported material can undercut domestic supply.

The association says the problem is significant enough to warrant tighter checks at the border and a broader tariff definition covering timber with Russian content. It has linked the issue to the broader sanctions response to the war in Ukraine, which has already led to extensive trade restrictions on Russia. What remains unclear is how much of the timber trade is affected, how customs authorities would verify origin in processed products, and whether the government will change the current rules.

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