An illegal scheme is facilitating the entry of Russian birch wood into European Union (EU) countries, valued at approximately 1.5 billion euros, with Portugal receiving around 1,000 trucks of illegal birch plywood.

Earthsight has shared its findings with EU authorities, urging for stronger actions from the European Commission against this illegal wood trade, but reports indicate limited responses.

European companies, including manufacturers of toys, flooring, and furniture, have been identified as buyers of this illegal birch wood, although they deny any wrongdoing.

The investigation highlights systemic flaws within the Forest Stewardship Council (FSC), as many companies involved in illegal wood trafficking possess this certification, raising questions about its integrity.

The Chinese company 'Tianma Lvjian' has been identified as a significant smuggler of birch plywood, allegedly offering to label illegally laundered Russian plywood with FSC certification for an additional cost.

The scheme involves both foreign companies and European traders, who have admitted to violating sanctions, referring to the operation as a 'gold mine'.

Russian state forests are a critical revenue source for the Russian war machine, according to the investigation, which implicates notable Russian oligarchs in the supply chain.

Seven of the ten largest Russian birch wood exporters continue to supply the EU, with profits benefiting oligarchs closely connected to Vladimir Putin.

Tara Ganesh, leader of 'Earthsight', has called on the Portuguese government to investigate all birch plywood entering the country and to end the 'blood-stained' trade.

Since the imposition of sanctions in July 2022, it is estimated that over 500,000 cubic meters of Russian wood have entered the EU, with about 30,000 cubic meters, equivalent to 990 trucks, arriving in Portugal alone.

The British NGO 'Earthsight' has conducted a nine-month undercover investigation, revealing a wood laundering operation that violates sanctions, with over 100 million euros worth of this illegal trade occurring in Portugal.

Despite EU sanctions reducing the flow of Russian wood to Europe by about 80%, approximately 20% of birch plywood consumed in Europe remains illegal.