Four Russians have been charged with smuggling timber valued at $3m per month into neighbouring China. The four are accused of using dozens of different companies and fake documents to smuggle 150 freight cars of lumber every month. Police believe the four are part of a much larger smuggling ring. Trade across the border is driven by huge Chinese demand for raw materials, and illegal trade increased dramatically after the collapse of the Soviet Union. Illegal timber trade from Russia to China in 2011 was valued at $1.3 billion, accounting for around 10 million cubic metres of logs and sawn timber.

Russian police have busted an international group suspected of costing the state over 2 billion rubles ($60 million) through the illegal purchase and sale to China of timber, Russia’s Interior Ministry reported on Wednesday.
“It has been established that a group of Chinese citizens in Russian regions bordering China was paying cash for large volumes of illegal timber and legalizing it for export to China using documents forged by their Russian accomplices,” the ministry said in a statement.

A new WWF report warns that the Greater Mekong subregion in Southeast Asia risks losing more than a third of its natural forest cover in the next two decades at current rates of deforestation. The region, which is host to vital freshwater systems and forests depended upon by iconic species and a huge human population, is threatened by dam development, poaching and timber theft. The local governments have also given away large concessions to mining companies and plantation owners in designated protected areas.

The debate led to a disagreement between The Forest Trust (TFT) and WWF. Jason Clay from WWF US referred to FSC as a success story in halting deforestation. However, Scott Poynton from TFT, while acknowledging FSC as the strongest forest management standard, accused it of allowing illegal timber through thousands of Chinese Chain-of-Custody certified factories with the help of WWF’s GFTN programme, FSC accredited certification bodies and the FSC itself. Clay did not respond to the allegations.

The London-based Environmental Investigation Agency (EIA) has published a report accusing China, the world’s biggest importer and consumer of timber, of fuelling the trade in illegal timber with at least a tenth of imports coming from illegal sources. Over 75 per cent of China’s timber imports are processed for domestic consumer markets and are not affected by legislation in the US and EU. The EIA urges China to bring in similar legislation to ensure real progress in curbing the trade in illegal logging.

Experts are warning that the focus on Brazil, which hosts 60% of the Amazonian rainforest, is deflecting attention from increasing Amazonian deforestation in neighbouring countries such as Bolivia, Peru, Columbia and Venezuela. The main driver is considered to be the commodities boom centred on exports to China and other Asian economies. Conservation International in Bolivia say that government policies and subsidies encourage business development in the Amazon which inevitably leads to deforestation.

Washington-based NGO Rights and Resources Initiative have published a report claiming that there is a vital link between forest dwellers having rights over their land and preventing deforestation. It points to examples in China, India and Brazil where locals have had a say over how their forests are managed. Conservation groups are hoping to get land rights firmly on the agenda at the Rio 20+. The summit takes place on 20-22 June and will discuss poverty reduction, advancement of social equity and environmental protection.

Low paper prices reduce Stora Enso’s profits. Overcapacity in the European market and insufficient demand are considered to be a major factor. CEO, Jouko Karvinen, highlights the need to keep its European business strong to fund planned mill construction in China and Uruguay – regions with considerable growth.