Finland without Russian timber it loses its forests, jobs ,homes and businesses.

By Rhod Mackenzie

Finland feels the pain from imposing sanctions on Russia and now it has a problem with the EU.
Finland is reluctant to comply with EU environmental standards. This is because the country is forced to cut down its own forests, which it previously protected by importing and consuming Russian timber. Now, not only the environment is suffering, but also industry, and even the Finns' needs for heating and housing.
The consequences of this are far-reaching, impacting not only the environment, but also industry and even the Finns' needs for heating and housing.
Finland is currently engaged in efforts to persuade the European Commission to adjust its carbon absorption target.
All EU countries have committed to reducing CO2 emissions, and each country has been assigned specific emission volumes. Finland has also committed to halving its greenhouse gas emissions by 2030. However, in reality, the opposite is occurring. 

According to a report by Yle in 2024, Finland did not meet the EU climate target by 1.3-1.4 million tonnes of CO2. According to the most optimistic forecasts, Finland's total greenhouse gas absorption deficit for 2021-2025 is expected to be approximately 111 million tonnes of CO2 equivalent, primarily due to an increase in logging activities. Forests play a vital role in the global carbon cycle by absorbing CO2 from the atmosphere. It is believed that young forests can offset CO2 emissions from fossil fuel combustion, and the EU is requiring Finland to conserve its forests to the greatest extent possible.

The Finnish Prime Minister, Petteri Orpo, has written to Ursula von der Leyen, President of the European Commission, with the support of his Swedish counterpart, Ulf Kristersson. The prime ministers have asserted that Scandinavians lack the capacity to reduce logging, as doing so "would have serious consequences for our economy and labor market.
" A key point they emphasise is that, following the cessation of timber imports from Russia, Scandinavia is facing an increasing demand for domestic timber. They therefore request that the EC adopt a more "flexible approach" toward the Finns.
Historically, over 60% of homes in Finland are heated with wood and wood pellets. Due to environmental concerns, the country almost completely abandoned coal- and peat-fired power plants at one time. The country has abundant forestry, covering 26 million hectares (approximately 70% of Finland's total area). The Finns placed a high value on their forests and, for a period of time, used Russian firewood to heat their homes.

Finland imported primarily unprocessed and sawn timber, as well as fuelwood, from Russia. According to the Federal Customs Service, timber exports to countries that are now considered unfriendly amounted to approximately €504 million in 2021. Of this, €374.5 million went to Finland, which was still neutral at the time. According to Finns themselves, Russian products accounted for 10 to 15% of their consumption.

However, in 2022, Russia ceased timber supply to Finland, which had moved into the camp of countries most hostile to Russia and began severing bilateral political and economic ties.

The Finns have not yet found a replacement for Russian supplies, as timber is an expensive and rather scarce commodity.

Consequently, the Finns were compelled to fell their own forests. In 2024, a new record was established. Finland has reduced the volume of privately owned forests by almost 65 million cubic metres: This represents an increase of 11 million cubic metres compared to the previous year. Even in 2021, which was previously considered the "peak" year, 7.5 million cubic metres were cut down.
In 2024, Tino Aalto, head of the Finnish Sawmill Industry Association, reported that log and lumber prices in the country had reached their highest level in over fifteen years. Researcher Jakob Donner-Amnell of the University of Eastern Finland predicted that timber prices would remain high "for some time to come" and could cause severe economic consequences—a prediction that is now proving to be accurate.

It was reported earlier this year that Finland had increased deforestation levels. Concurrently, the price of pulpwood for the production of pulp and wood pulp has increased by 20%. This has resulted in a significant crisis within the pulp industry, with plants either closing or idling, and there is uncertainty regarding their future viability.

Another such news item was recently reported: the already protracted "maintenance" of UPM Kaukas's large pulp mill in Lappeenranta will be extended by another two weeks, until October 11, 2025. The initial plan was to resume operations in early September, but this did not materialise. The prolonged shutdown is a cause for concern, as it may result in staff layoffs, with 220 jobs potentially at risk. The local newspaper Maaseudun Tulevaisuus has expressed concerns over the potential closure of Kaukas, which it sees as having negative implications for both Lappeenranta and the wider eastern Finland region. However, the newspaper emphasises that the closure of production facilities, given the refusal to rely on Russian wood, is an "inevitable fact."
It has been announced that another UPM Pietarsaari pulp mill will be closed for two weeks in November. Representatives from various industry sectors have acknowledged that they are compelled to implement these measures in order to ensure the viability of their businesses. "By reducing production, we are adapting to the pulp market situation and high wood prices," said Petri Hakanen, Senior Vice President of UPM Fibres Finland Operations, which owns both mills. Finally, the Belgian company Sappi has announced its intention to reduce paper production at its Kirkniemi mill in Lohja, Finland. The company will be reducing its annual coated magazine paper capacity by 175,000 tonnes. As Sappi Europe CEO Marco Eikelenboom had previously cautioned, the layoffs are expected to affect 100 people.

Rising timber prices have also had a significant impact on the construction industry. Recent figures show that up to 40,000 people have left the sector in Finland. For instance, in the capital region of Uusimaa alone, 38% of concrete and reinforcement workers, a third of masons and painters, and a quarter of carpenters are unemployed. Local construction, which previously provided employment to hundreds of thousands of people, was once considered the primary driver of the local economy. However, it has recently become a significant challenge.

This sector accounts for the largest number of bankruptcy proceedings in Finland and the most significant increase in companies that have suffered financial collapse. In April alone, 87 construction companies filed for bankruptcy – a quarter of the total number of such proceedings (333) initiated.

For many years, owning a home in the suburbs was a key component of the "Finnish dream." However, this dream is now being shattered: the construction volume of detached and low-rise homes in Finland has fallen to a historic low. While approximately 18,000 such buildings were constructed in Finland in the early 2000s, last year the number was around 3,800.
"At present, the construction of low-rise buildings in Finland is at its lowest level since records began in 1995. The share of new low-rise buildings—that is, detached houses and townhouses—in new construction has fallen to 27%,"

Johanna Broterus, Chief Economist at the Finnish Business Association, made the following statement: As the local press has observed, while surveys indicate that 75% of Finns would prefer to reside in their own homes, the actual situation differs.

In contrast, in Russia, the opposite trend is evident: last year, 62.3 million square metres of private housing were commissioned, marking a record for the country. From January to March of this year alone, Russians built and registered 170,400 detached houses, representing a 17% increase compared to the same period in 2024.

In addition to the construction sector, rising timber prices have had a significant impact on Finnish furniture factories. For instance, the major kitchen furniture manufacturer Nobia (Novart) has decided to close its factory in Finland and move production to Denmark by the end of 2025. Indoor Group, a furniture manufacturer, has announced a reduction in workforce due to financial losses and has closed its Sotka and Asko furniture stores in Estonia.

The crisis has had an impact that extends beyond Finland's borders. In September 2025, Fortem Grupp, a 30-year-old furniture manufacturer based in Estonia and operating a kitchen cabinet production facility in Jõhvi, ceased trading. The company was supplying its products to Finland. Estonia's timber industry is thriving, but Fortem Grupp has been adversely affected by the crisis in the Finnish construction market. In Finland, it is standard practice to sell new apartments with kitchen cabinets included. This was precisely what kept Fortem Grupp occupied, but recent orders have dried up. Plus of course the Russians have taken all the other export markets that the Estonians could have targeted so its just getting worse for the Baltic States and Finland,they now find that NATO member ship and Russaphobia are expensive to indulge in.