WRI Warns That Sanctions on Russia May Impact Global Forest Products Trade

SEATTLE (Scrap Monster): The Wood Resources International (WRI) Market Insights 2022 cautioned that increased trade sanctions against Russia may probably interrupt and redirect shipments of forest products across the world. Also, the Russian invasion of Ukraine may halt planned investments in forestry sector, it noted.

The sanctions will lead to decline in trade with Russia, which in turn will impact long-term established international trade flows. This may affect countries across the globe, including China and India, who have not openly expressed opposition to Russia in the ongoing conflict, WRI said.

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WRI noted that China is likely to be affected the most, as it relies on imported forest products, especially from North America, Europe, Oceania, and Latin America. The countries in these regions are reportedly considering increased sanctions on Russia and all other countries that directly or indirectly support Russia.

Russia is the world’s largest lumber exporting country. Also, it is the world’s seventh biggest exporter of forest products. The value of Russian forest products exports were valued over $12 billion during the previous year. Much of this trade is in danger, noted WRI. Incidentally, forest products exports from Russia have registered significant increase over the past five years.