Illegally traded 'blood birch' business implicates Latvian corporation
In a concerning development, a Latvian company, Revival SIA, has admitted to smuggling Russian conflict birch into the European Union (EU). Despite sanctions imposed by the EU on Russian and Belarusian birch plywood exports, extensive circumvention has occurred through third countries such as China, Georgia, Kazakhstan, and Turkey.
Since 2022, Russia and Belarus have exported over a billion euros worth of birch plywood to Europe. While the direct flow of timber from these countries to the EU declined drastically immediately after sanctions were introduced, the EU has imported at least €1.8 billion worth of illegal Russian and Belarusian birch plywood since July 2022. This includes €273 million imported between November 2024 and April 2025 alone.
These third countries serve as intermediaries where Russian- and Belarusian-manufactured plywood is relabeled and repackaged to evade EU sanctions, often with fake certificates from reputable labeling companies. For EU importers, such products appear to originate from these third countries, enabling the so-called “laundering” of banned wood products into the European market.
The NGO Earthsight has highlighted that this workaround undermines EU efforts to restrict trade with Russia and Belarus and calls attention to proposals of categorizing some of these third countries as ‘no-risk’ under the European Union Deforestation Regulation (EUDR), which could further ease illegal timber trade through them.
Revival SIA, the Latvian company in question, has offered to supply plywood from Belarusian manufacturers PinskDrev, GomelDrev, and Rechitza. The European Union Timber Regulation (EUTR) authorities in Latvia have taken action against imports of wood from Russia or Belarus. However, the penalties for EUTR breaches are often small, according to Earthsight.
Oleg, a Russian-speaking representative of Revival SIA, claimed to manage a significant part of the traffic in banned plywood from Belarus into the EU over the Polish border. Mārtiņš Lācis, a member of the board of AS "Latvijas finieris", has been raising concerns about such schemes for several years.
Timber exports are a significant source of funding for Russia's war machine, alongside gas and oil. The Financial Intelligence Unit (FID) in Latvia has drawn attention to several companies importing timber from Russia and Belarus into the EU, passing it off as timber produced in other countries.
In response, the European Commission has imposed additional import tariffs on plywood imported from Kazakhstan and Turkey. However, the commission's investigation and tariffs have only temporarily reduced volumes from these countries, with new sources emerging, including Georgia, China, and Egypt.
An average of twenty trucks with wood from Russia and Belarus reach Europe daily. Despite the ongoing efforts to combat this issue, the smuggling of Russian conflict birch into the EU continues to pose a significant challenge.
[1] Earthsight, "Russian plywood laundered through Turkey, Georgia and China to evade EU sanctions", 14th April 2023. [Accessed 25th May 2023]. Available from: https://earthsight.org/2023/04/14/russian-plywood-laundered-through-turkey-georgia-and-china-to-evade-eu-sanctions/
[2] Earthsight, "How Russia and Belarus are circumventing EU sanctions on birch plywood", 16th February 2023. [Accessed 25th May 2023]. Available from: https://earthsight.org/2023/02/16/how-russia-and-belarus-are-circumventing-eu-sanctions-on-birch-plywood/
[3] Earthsight, "EU timber sanctions 'largely ineffective' as Russia and Belarus export €1.8bn of birch plywood", 16th February 2023. [Accessed 25th May 2023]. Available from: https://earthsight.org/2023/02/16/eu-timber-sanctions-largely-ineffective-as-russia-and-belarus-export-1-8bn-of-birch-plywood/
- The Latvian company Revival SIA has come under scrutiny for attempting to supply plywood from Belarusian manufacturers, PinskDrev, GomelDrev, and Rechitza, which could potentially contravene EU regulations.
- The European Commission has not only imposed tariffs on plywood imported from Kazakhstan and Turkey but also initiated an investigation into the crime of smuggling Russian conflict birch into the EU.
- General-news outlets and crime-and-justice media have covered the ongoing issue of Russian and Belarusian birch plywood being laundered through third countries like Turkey, Georgia, China, and Egypt to circumvent EU sanctions.
- Mārtiņš Lācis, a member of the board of AS "Latvijas finieris", has expressed concerns about the illegal timber trade schemes that have been operating for several years.
- EU media has reported on expert opinions, suggesting that the categorization of certain third countries as ‘no-risk’ under the European Union Deforestation Regulation could further exacerbate these illegal forestry practices.
