Illegal logging

To understand whether the kinds of discrepancies found in Russian-Chinese trade are common elsewhere, it is necessary to analyse timber exports to other major Russian trade partners. As shown in Figure 13, Finnish customs data, 48 for example, shows some losses in the value of timber imports from Russia when compared to Russian customs reports. By contrast, Swedish customs data for 2014 49 shows a substantially greater value of timber imports from Russia than was reported by Russian customs. South Korean customs data 50 shows significant losses in the value and the amount of roundwood imported from Russia during 2014.

Russian Customs (in)

Chinese Customs (out)

1,420

1,387

Roundwood (HS code 4403) Sawn wood (HS code 4407) Pulp, paper (HS codes 47-49)

852

894

5,586

5,703

1,203

1,559

9,388

9,736

1,272

1,542

to FINLAND

Russian Customs (in)

Finnish Customs (out)

60.2

62.9

Roundwood (HS code 4403) Pulp, paper (HS codes 47-49)

31.8

29.8

6,566

6,290

543

557

Note: The 1.33 Euro to USD exchange rate decreased by 9.6% during 2014.

to SWEDEN

Russian Customs (in)

Swedish Customs (out)

0.5 0.6

0.31 18 0.07

Roundwood (HS code 4403) Sawn wood (HS code 4407) Pulp, paper (HS codes 47-49)

3.1 6.8

6.3

671

784

Liquidators because "the USmarket and the Government do not like Russia". Bribes must also be taken into account: according to one Chinese businessman, documentation for illegally harvested timber costs between US$ 3 and US$ 6 per m³. 45 A detailed comparison of official statistics from the Russian and Chinese national customs services reveals discrepancies in the value and amount of wood products exported from Russia and imported to China (Figure 13): Chinese customs data 46 shows a greater value for timber imports from Russia than was reported by Russian customs. 47 The sum of the differences in declared export/import values of wood and wood products was US$ 668 million; and a discrepancy of 432 million kg in the declared amount of products.

44.7

67.3

Note: The 0.147 SEK to USD exchange rate decreased by 15.3% during 2014.

to SOUTH KOREA

165 South Korean Customs (out)

Russian Customs (in)

162

Roundwood (HS code 4403) Sawn wood (HS code 4407) Pulp, paper (HS codes 47-49)

110.4

85.7

155

137

69.3

60

84

333

46.9

17.6

Million kg

Million USD

Source: Customs data

Graph by Manana Kurtubadze, GRID-Arendal, 2015.

Figure 13: Russian wood-based exports to China, Finland, Sweden and South Korea in 2014

17