‘Blood money’ claims over Russian commodity used in thousands of Australian houses

Significant amounts of Russian timber are entering Australia after being laundered through China and other countries, evading tariffs imposed after Russia’s invasion of Ukraine and sparking demands for government action.

The phenomenon – similar to the flow of Russian “blood oil” into Australia after being processed overseas – means thousands of Australian home builders could be inadvertently aiding Vladimir Putin’s war effort.

The Australian-Ukrainian community and local timber industry are calling for the government to impose a ban on Russian-origin timber, extend tariffs and improve country-of-origin testing to slash the amount of Russian-origin wood making its way into the country.

“It is evident that Russian timber is coming into Australia rerouted through third-party countries, undermining the intent of the tariff regime put in place due to Russia’s invasion and war in Ukraine,” the Australian Forest Products Association said in a submission to a Senate inquiry examining the effectiveness of sanctions on Russia.

Acting chief executive Richard Hyett estimated up to 100,000 cubic metres of annual imports could include Russian timber, with up to 15,000 new homes built each year likely containing Russian timber.

The association said the “evidence is clear that a large volume of Russian timber is being transferred and/or transformed through China”, escaping a 35 per cent tariff on Russian imports.

It said back-door imports were having a devastating impact on the local forestry sector.

“Australian domestic producers are losing market share due to an influx of imports at well below market prices, crippling our manufacturing industry,” it said in its submission.

“Unlike the EU, US and others, Australia has not undertaken any action to stem the flow of Russian timber rerouted through third nations and has now become a focus for these exports.”

Russia, which has more than a fifth of the world’s forests, was a major supplier to Australia before the war in Ukraine, accounting for up to 50 per cent of the local market for laminated veneer lumber.

A 35 per cent tariff on Russian goods imposed by Australia after Putin launched his full-scale invasion in 2022 caused Russian timber imports to plummet and saw a surge of imports from China.

Kateryna Argyrou, chair of the Australian Federation of Ukrainian Organisations, said: “The Australian government is allowing Russian blood money to fund the murder of Ukrainian civilians, and it must stop now.

“Whether it is Russian timber laundered through Chinese factories or Russian crude oil refined in India and B