Impact of the EU timber regulation on Russian companies exporting wood and wood-based products

Resou ces and Technology 12 (1): 37-44, 2015 ISSN 2307-0048 h p:// .pe su. u DOI: 10.15393/j2.a .2015.2941 A icle Impac o he EU Timbe Regula ion on Russian companies expo ing wood and wood-based p oduc s Elena V. Nesha ae a 1,*, Timo Ka jalainen 2,3 1 Sain -Pe e sbu g S a e Fo es -Technical Uni e si y, 194021, Sain -Pe e sbu g, Ins i u skiy pe . 5; E-mail: [email p o ec ed] (E.N.) 2 Na u al Resou ces Ins i u e Finland (Luke), P.O. Box 68, 80101 Joensuu, Finland; Email: [email p o ec ed] (T.K.) 3 Uni e si y o Eas e n Finland, Facul y o Science and Fo es y, School o Fo es Sciences, P.O. Box 111, 80101, Joensuu, Finland; Email: [email p o ec ed] * Au ho o whom co espondence should be add essed; Email: [email p o ec ed] (E.N.); Tel.: +7 904 645 07 93; Fax: +7(812) 670 81 17 Recei ed: 6 Feb ua y 2015 / Accep ed: 27 Jun 2015/ Published: 10 July 2015 Abs ac : The p oblem o illegal logging o ced EU, which is one o he majo consume s o wood in he wo ld, o de elop legisla ion aimed a e mina ion o supplies o illegally ha es ed wood and wood-based p oduc s in o EU. EU Timbe Regula ion №995 is applicable o any company placing wood o wood-based p oduc s on he EU ma ke . Russia anks i s in illegally ha es ed imbe expo in o EU ma ke s, he e o e EU Timbe Regula ion should in luence subs an ially on Russian companies. Possible in luence o he EU Timbe Regula ion on Russian companies was analyzed based on a ques ionnai e sen o Russian companies expo ing wood and wood-based p oduc s. Analyses we e supplemen ed by a li e a u e e iew and expe ’s opinion. Resul s om he ques ionnai e show ha Russian companies a e no going o s op expo o wood and wood-based p oduc s in o EU because o he EU Timbe Regula ion. They plan o e ise hei supplie s and in e nal company documen a ion and documen a ion om supplie s. Expo ing companies plan o s op business wi h some o he supplie s and eplacing by new supplie s is no obliga o y. This means ha expo o wood and wood-based p oduc s may dec ease. Keywo ds: expo o wood; expo o wood-based p oduc s; illegal logging; o igin o wood; acing sys ems; EU Timbe Regula ion; Russia Resou ces and Technology 12 (1): 37-46, 2015 ISSN 2307-0048 h p:// .pe su. u 38 1. In oduc ion Illegal logging is a global p oblem o many o es ed coun ies. The e m “illegal logging” means ha es ing, anspo ing, p ocessing, buying and selling o wood wi h iola ion o na ional o sub- na ional laws [1]. Some coun ies a e ying o sol e he p oblem o illegal logging g adually. The e a e al eady se e al na ional p og ams di ec ed o p ohibi ion o illegally ha es ed imbe en e ing hei ma ke s, such as US Lacey Ac , EU Timbe Regula ion, and Aus alian Illegal logging P ohibi ion Ac . Inc easing numbe o consume s in de eloped coun ies, including companies, go e nmen s and inal cus ome s a e conce ned abou legali y o wood o wood-based p oduc s hey buy. The e o e companies and go e nmen s ha e suppo ed de elopmen o p ocu emen p og ams, o es ce i ica ion, chain o cus ody and wood o igin- acing sys ems o ackle illegal ha es ing and ade. Eu opean Union (EU) is one o he majo consume s o imbe and wood-based p oduc s in he wo ld. EU in e nal oundwood emo al (including oundwood and i ewood) in 2012 was abou 430 million m3 [2], bu i was no enough o he demand and hus EU is a ne impo e o wood. In 2013 he olume o impo ed indus ial oundwood o EU was a ound 52 million m3 and expo o indus ial oundwood om EU was a ound 38 million m3 [2]. Wood may come o EU om coun ies, which possibly ha e weake con ol o e wood o igin. I is es ima ed ha 26 o 31 million m3 o he wood-based p oduc s, which a e impo ed om non EU coun ies, comes om illegal sou ces, o example Russia, Indonesia, China, B azil and o he s. Almos hal o he illegal wood has been claimed o come om Eas e n Eu ope, No h Asia and he Balkans [3]. EU Timbe Regula ion №995 (EUTR), aiming o e mina e supplies o illegally ha es ed wood and wood-based p oduc s in o EU, came in o o ce in Ma ch 2013 and is applicable o any company (Ope a o ) who places imbe in o EU ma ke . The Eu opean Commission plans o analyze e ec i eness o EUTR’s implemen a ion in Ma ch 2015 and hence o h each 6 yea s [4]. Howe e , EUTR al eady in luences ade s o wood o wood-based p oduc s. Taking in o accoun ha some o he wood and wood-based p oduc s in Russia may ha e illegal o igin and ha Russia is one o he majo expo e s o oundwood in o EU, i is expec ed ha EUTR will in luence Russian companies expo ing wood and wood-based p oduc s in o EU. The aim o his esea ch was o s udy possible impac s o he EUTR on he Russian companies expo ing wood and wood-based p oduc s o he EU. The hypo hesis was ha he numbe o Russian expo ing companies o supplie s o such companies would dec ease due o he implemen a ion o he EUTR. A hypo hesis is ha some expo e s o wood o wood-based p oduc s will lea e he supply chain om Russia o he EU coun ies because hey will no be able o p o e legali y o wood. 2. Ma e ials and Me hods The i s pa o he esea ch is ocused on e iewing li e a u e ela ed o sys ems, which could help implemen a ion o he EUTR in Russia. The main obliga ions o Ope a o s a e o wo k wi h Due Diligence Sys em (DDS). DDS should minimize he isk o placing illegally ha es ed wood o wood p oduc s con aining illegally ha es ed wood o he EU ma ke . DDS includes h ee key elemen s: In o ma ion (wha kind o imbe , coun y o o igin, quan i y, in o ma ion abou supplie s); Risk assessmen and Risk mi iga ion [5]. Sys ems which could be used o DDS include olun a y ce i ica ion schemes, acing sys ems o wood o igin and Russian na ional legisla ion. These sys ems comba illegal logging and possibly could be used o he needs o he EUTR. Resou ces and Technology 12 (1): 37-46, 2015 ISSN 2307-0048 h p:// .pe su. u 39 The second pa o he esea ch was o de e mine he impac o he EUTR on he Russian expo - o ien ed o es companies: - Possible dec ease in he numbe o expo -o ien ed o es companies; - Possible dec ease in he numbe o supplie s o expo -o ien ed o es companies; - In e nal changes in business p ac ices o expo -o ien ed o es companies. Changes in he numbe o expo -o ien ed companies could be analyzed compa ing he numbe o companies which expo ed wood and wood-based p oduc s in o EU a he end o 2012 and 2013. Change in he o al numbe o expo e s could be ela ed no only o impac s o he EUTR bu also o o he easons. Da a abou changes in he numbe o supplie s and in in e nal ope a ions in a company can be ob ained only di ec ly om he company. The e o e ques ionnai e was p epa ed and sen ou o Russian o es companies who expo wood and wood-based p oduc s in o EU. Web se ice i ualexs. u which can be used o ma ke ing su eys was used and ques ionnai e was sen o he companies a he end o 2013. Fi s ques ions we e o ge basic in o ma ion abou he company, including size and expo ed p oduc s. The es o he ques ions asked i companies ha e ecei ed any equi emen s ela ed o he EUTR implemen a ion om he Ope a o s, and i companies ha e o do any ex a ac ions ela ed he EUTR implemen a ion and wha kind o ac ions i any? A ew ques ions we e aimed a de e mining companies’ opinion abou he possibili y o ul ill he EUTR equi emen s h ough olun a y o es ce i ica ion, in e nal sys em o acing wood o igin and h ough implemen a ion o he new amendmen s o he o es code ela ed o he s a e con ol o u no e o oundwood [16]. Ques ionnai es we e illed in anonymously because i is he only possible way o ge hones answe s om companies. Ques ionnai es we e dis ibu ed o abou 500 Russian companies expo ing oundwood, p ocessed wood, pulp and pape o EU. Al oge he 35 answe s we e ecei ed, and 27 o hem belonged o he a ge g oup, companies expo ing imbe o imbe p oduc s in o EU. Such amoun o answe s does no allow eaching high con idence le el o esea ch. Sample size is calcula ed using o mula 1 and 2 [6]. Acco ding o o mula 1 in case o z2 =1, able alue 44 o con idence le el is 85%, P=0,5; C=13%, SS=30,6 esponden s. And acco ding o o mula 2 o popula ion (Pop) less han 50 000, Pop=500, New SS= 28,9. (1) Fo mula 1. Calcula ion o sample size o gene al popula ion g ea e han 50,000 [6]. Whe e: SS = Sample Size Z = Z- alue P = Pe cen age o popula ion picking a choice, exp essed as decimal (on de aul ) C = Con idence in e al, exp essed as decimal (2) Fo mula 2. Calcula ion o sample size o gene al popula ion less han 50,000[6]. Consequen ly, de i ed sample size o 27 answe s app oxima ely co esponded o 85% con idence le el and 13% con idence in e al. This means ha in abou 85% o he cases o he unexamined 27 companies will gi e he same answe s. Con idence in e al means ha quan i a i e esul s de i ed om he sample will luc ua e ±13%. Fo example, i 15% o esponded companies in ended o s op expo , con idence in e al ±13% means ha in ac 2% o 28% o he companies Resou ces and Technology 12 (1): 37-46, 2015 ISSN 2307-0048 h p:// .pe su. u 40 in ended o s op expo . Such a big ma gin o e o means ha quan i a i e analysis is no desi able. Consequen ly, analysis gene ally has a quali a i e cha ac e . I should be no ed ha he assumed numbe o expo ing companies was 500. Some o hem may no exis anymo e, and some may sell e y small amoun s o wood o wood-based p oduc s. The e o e, he numbe o ope a ing companies is mos likely less han 500. Consequen ly, con idence in e al could be less han 13% and con idence le el could be mo e han 85%. The e o e dec ease in he o al popula ion and inc ease o accu acy a e possible, his esea ch may also include quan i a i e esul s. Russian expo e enues o wood and wood-based p oduc s we e $3,5 billion in 2010 o he EU coun ies ($1 equal o 31 ubles)[7]. Agg ega e annual income o he companies who e u ned he ques ionnai e was mo e han 13 billion ubles, which was abou 12 % o he Russian o al annual expo ea nings om expo o wood and wood-based p oduc s o Eu ope. This ac allows us o conduc some quan i a i e analysis. Abou 40% o he companies we e la ge based on hei u no e (o e 1 billion ubles pe yea ), 45% SMEs (small and medium-sized en e p ises) and he es ones we e mic o en e p ises ( u no e less han 60 million ubles pe yea ). Nea ly 80% o he companies we e expo ing p ocessed wood, 10% oundwood and 10% pulp and pape . Nea ly hal o he companies (45%) sou ced wood bo h om hei own ha es ing ope a ions and om supplie s, one hi d used only supplie s and 22% go all wood om hei own ha es ing ope a ions. 3. Resul s In Russia he e a e wo olun a y ce i ica ion schemes, P og am o he Endo semen o Fo es Ce i ica ion (PEFC) and Fo es S ewa dship Council (FSC) ce i ica ion. Fi s ce i ica es in Russia we e issued in 2000 by FSC and he numbe o ce i ica es g ows. By 2011 al eady 300 FSC ce i ica es (bo h o es managemen and supply chain) and 5 PEFC ce i ica es we e issued, co e ing o ally almos 30,2 million hec a es[7]. Mo e han hal o he ce i ied o es land is loca ed in he Eu opean pa o Russia. Today almos all la ge-sized Russian expo -o ien ed companies a e ce i ied. Volun a y o es ce i ica ion was designed o consis en ly imp o e he p ocess o o es u iliza ion and managemen . Ce i ica ion can help also comba ing illegal logging because o inc easing ecological esponsibili y, moni o ing o wood o igin, and aceabili y o p ocessed wood p oduc s. P io o implemen a ion o he EUTR he majo i y o publica ions ei he exp essly o implici ly desc ibed a possibili y o use olun a y o es ce i ica ion as a due diligence sys em equi ed by he EUTR [7]. Volun a y o es ce i ica ion, which is highly complian wi h he EUTR, howe e is no a pass icke o he EU ma ke s. Possibili y o use ce i ica ion as a ool o comply wi h he EUTR equi emen is men ioned in he egula ion: «In o de o ecognize good p ac ice in he o es y sec o , ce i ica ion o o he hi d pa y e i ied schemes ha include e i ica ion o compliance wi h applicable legisla ion may be used in he isk assessmen p ocedu e» [8]. Since DDS con ains no only isk assessmen , bu also in o ma ion and isk mi iga ion pa s, o es ce i ica ion does no ully mee he equi emen s. Despi e ha , mo e han hal o he Russian expo ing companies who esponded o he ques ionnai e belie e ha olun a y o es ce i ica ion is a su icien ool o mee he EUTR equi emen s. Wood o igin acing sys ems, which a e common o mos o he in e na ional companies ope a ing in Russia, a e ocused on objec i e e idence o he legali y o wood and p oduc s manu ac u ed om he wood. Thus, he aims o wood o igin acing sys em and he EUTR a e he same, namely o p e en illegally ha es ed imbe o en e he ma ke . Acco ding o he EUTR, hi d pa y e i ied schemes ha include e i ica ion o compliance wi h applicable legisla ion can Resou ces and Technology 12 (1): 37-46, 2015 ISSN 2307-0048 h p:// .pe su. u 41 be used in isk assessmen p ocedu e. Tha is he eason why exis ence o company’s wood o igin acing sys em can simpli y he de elopmen o DDS by he Ope a o . Acco ding o he ques ionnai e esul s a ound 95% o he companies who ha e hei own wood o igin acing sys em belie e ha hei acing sys em al eady complies wi h he EUTR’s equi emen s. Besides ce i ica ion and e i ica ion schemes o equi emen s o ecologically sensi i e ma ke , s a e con ol o illegal logging is one o he majo o ces in comba ing illegal logging. Among o he con ol measu es he Amendmen s o he Fo es Code may be no ed being ela ed o comba ing illegal logging and o con ol wood u no e which came in o o ce in Decembe 2013 [9]. New equi emen s ela ed o amendmen s o he Fo es Code dese e high a en ion because his ac po en ially could become an ini ial pa o he DDS. Those amendmen s include he ollowing de elopmen s[9]: • In oduc ion o Uni ied S a e Au oma ed In o ma ion Sys em o ound wood u no e ; • Obliga o y decla a ion o ound wood u no e be o e i s p ocessing; • Liabili y o iola ion o legisla ion abou u no e o ound wood and possibili y o exp op ia ion o wood in case o such iola ion; • Obliga o y ma king o wood asso men o aluable ee species; • P esence o a special accompanying documen o anspo a ion o wood; • P ohibi ion o ci izens o sell ound wood p ocu ed o hei own needs. Da a equi ed acco ding o hose amendmen s a e pa ially he same as da a equi ed o he DDS. Fo example: place o ha es , name and add ess o logging company, numbe o lease ag eemen , in o ma ion indica ing compliance o ound wood wi h he applicable legisla ion such as allowed elling olume, documen s en i ling o ealize wood p ocu emen . Sligh ly mo e han hal o he esponden s (a ound 51%) did no belie e ha he Amendmen s o he Fo es Code would comple ely ensu e legali y o wood o igin. O he esponden s ei he conside ed ha he Amendmen s desc ibed abo e a e enough o p o e legali y o wood o igin o had no opinion. EUTR places he onus on he Ope a o s o con ol legali y o wood o igin. The e o e mos o he Ope a o s equi e Russian wood expo e s o e i y legali y o wood o igin. Acco ding o answe s ob ained om he ques ionnai e, abou 20% o he esponden s did no ge any eques om Ope a o s in he EU. Conside ing ±13% con idence in e al, he numbe o such companies ange om 7% o 33%. On he o he hand, he majo i y o he expo ing companies (67 o 93%) al eady know abou Ope a o ’s demands ela ed o implemen a ion o he EUTR. La ge sha e o expo companies in o med abou he EUTR’s equi emen s is a e lec ion o he ac ha mos o he Ope a o s ake se iously he necessi y o implemen he EUTR’s equi emen s and wo k ca e ully on i . The ques ionnai e included ques ions ela ed o de e mining possible impac o he EUTR on he expo ing companies. Due o he necessi y o implemen equi emen s o he EUTR some o he expo e s should ake measu es o p o e legali y o wood o igin o he Ope a o s, bu o o he expo e s equi emen s o he EUTR do no lead o any changes in usual business p ac ice. The esul s o he ques ionnai e also sugges ed ha some o he companies will e en s op expo because o impossibili y o p o e legali y. As a esul o he ques ionnai e, 65% (±13%) o he companies did no see any need o addi ional ac ions o implemen equi emen s o he EUTR. Tha means ha he majo pa o he expo e s does no need o spend ime o esou ces o mee he equi emen s es ablished by he Ope a o . Smalle sha e o he expo e s needs o implemen some ac ions o mee he equi emen s es ablished by he Ope a o . The esul s o he ques ionnai e sugges ed se e al op ions o ac ions ela ed o implemen a ion o he equi emen s o he EUTR. Resou ces and Technology 12 (1): 37-46, 2015 ISSN 2307-0048 h p:// .pe su. u 42 Nea ly 60% o hose companies who plan o ake di e en kinds o ac ions ela ed o implemen a ion o he equi emen s o he EUTR esponded ha hey we e going o ejec supplie s, which we e no able o mee he equi emen s. Also, as expec ed, almos hal o he esponden s answe ed ha all wha hey needed o do in e ms o implemen a ion o he equi emen s o he EUTR was o p epa e ex a documen a ion o p o e legali y o wood and o p o ide he same kind o pape s om hei own supplie s. Ac ion op ions “s a olun a y o es ce i ica ion p ocedu e” and “s a o build acing sys em o wood o igin” we e no chosen. No possible ac ions ou side sugges ed op ions we e gi en by esponden s in he ques ionnai e. Those companies who a e going o ejec some o hei supplie s a e eady o ejec on a e age a ound 51% (±13%) o he supplie s (Table 1). Fou companies ha e in o al 90 supplie s, and 51 o hem would be ejec ed. I should be no ed ha one company was going o ejec all supplie s (Company 1) and ano he (Company 4) only 25% o he supplie s. Table 1. Numbe o supplie s ejec ed by expo e s ela ed o implemen a ion o he EUTR equi emen s Company Numbe o supplie s Numbe o supplie s planned o be ejec ed % o supplie s planned o be ejec ed Company 1 3 3 100 Company 2 50 20 40 Company 3 25 20 80 Company 4 12 3 25 Sum 90 46 51 Abou hal o he companies plan o sea ch o new supplie s and he es plan o educe he olume o expo . I is di icul o p edic dec ease in o al expo ing olume o wood and wood- based p oduc s based on he cu en ques ionnai e. Howe e , i is clea ha expo o wood and wood based p oduc s om Russia is expec ed o dec ease due o implemen a ion o he EUTR. Such dec easing is ela ed o he educ ion o he numbe o supplie s who a e no able o p o e legali y o wood o igin. 4. Discussion and Conclusions The s udy e ealed ha none o he esponden s plan o s op expo o imbe in o he Eu opean Union. Howe e , some o he companies who a e o ced o make some ac ions o mee ing he equi emen s o he EUTR a e going o decline se ices o some o hei wood supplie s. Conscien ious o es logge s and wood p ocessing companies who a e ope a ing in acco dance wi h he Russian legisla ion and who ha e possibili y o p o e legali y o hei ac ions ha e oppo uni ies o ind new cus ome s ep esen ed by Russian imbe expo e s. Such companies also ha e oppo uni ies o come in o he EU ma ke hemsel es. Possibili y o come in o he EU ma ke o such companies could be also explained by he ac ha some o he expo e s who a e going o educe he numbe o hei supplie s do no plan o sea ch new supplie s, bu plan o educe he olume o expo . I should be unde s ood ha hose supplie s who ha e been abandoned, will no cease o exis and will no s op illegal logging i he e is any. They will eo ien o in e nal Russian ma ke . The e o e, he EUTR could only s op supplies o illegally logged wood o he Eu opean ma ke , bu he o e all p oblem o illegal logging in Russia will no be in luenced. Cu en ly high expec a ions a e placed on he amendmen s o he Fo es Code ela ed o e i ica ion o he legali y o ha es ed oundwood. Resou ces and Technology 12 (1): 37-46, 2015 ISSN 2307-0048 h p:// .pe su. u 43 Acco ding o he ques ionnai e, Russian expo e s plan o ake he ollowing ac ions o mee he equi emen s o he EUTR:  Pa ial cancella ion o supplie ’s se ices;  De ailed modi ica ion o in e nal documen a ion and supplie ’s documen a ion. None o he esponden s speci ied implemen a ion o olun a y o es ce i ica ion o de elopmen o in e nal wood o igin acing sys ems as planned ac ions. This may be due o:  Implemen a ion o olun a y ce i ica ion p ocedu e equi es sizable in ellec ual and ma e ial inpu s. Despi e bene i s in he o m o inc ease in he p ice o p oduc o bigge possibili ies o sales, lo s o expo e s could manage wi hou ce i ica e. And since he ce i ica e canno comple ely ul ill he equi emen s o he EUTR, companies p e e o con ine hemsel es and ind cheape op ions o mee ing he equi emen s.  As no ed by he De elopmen Di ec o o one majo Russian o es indus y company “Ilim Pulp En e p ise” (Dmi y Chuiko), de elopmen o he in e nal wood o igin acing sys em is easie o la ge en e p ises whe e he cos s pe uni a e signi ican ly lowe due o he olume o p oduc ion [10]. The majo i y o such en e p ises al eady ha e hei own acing sys ems o wood o igin. Nowadays in Russia he e a e companies ha de eloped hei own Due Diligence Sys ems because hey see hem as he only possible sys em o comple ely ul ill he equi emen s o he EUTR. One o he examples is OOO S eza-les. Thei DDS is highly e alua ed and ecognized by a con olling uni in Ge many [11]. Also in Russia he e a e ce i ica ion bodies ha de elop DDS and o e implemen a ion in o expo e ’s p ac ice. Fo example, OOO “Lesexpe ” de eloped DDS based on he FSC s anda ds. In his case he cos o implemen a ion o he DDS was equal o 5-10% o he expenses o he chain o cus ody FSC ce i ica ion[12]. Nega i e e alua ion o he Amendmen s o he Fo es Code by companies could be ela ed o gene al nega i e e alua ion o ecen ly adop ed laws connec ed o o es sec o . The easons why companies make nega i e e alua ion o he Amendmen s ha e been discussed in ensi ely in o icial mee ings (e.g. mee ing o he Council o Fo es Indus y in he S a e Duma o Russian Fede a ion [13]) and in a p i a e discussion in public in e ne -sou ces [14]. Reasons o nega i e e alua ion include:  Unquali ied depu ies esponsible o decision making in o es indus y ield;  Companies conside ha he bu den connec ed o coun ing logged wood and decla ing is excessi e. Head o he Fo es y Depa men o Russian Fede a ion (M . Gaga in) no ed ha “coun ing ha es ed imbe is an obliga ion o e e y o es logge , no an ex a bu den”[13];  Amendmen s do no ope a e when wood p ocessing akes place nea he ha es ing a ea. In such cases, oundwood becomes sawnwood du ing se e al days. I should be unde s ood ha a e becoming sawnwood he imbe is no unde he in luence o Amendmen s. A he same ime he e is a possibili y o a oid illing up decla a ion and in oices which is obliga o y o oundwood in he con ex o Amendmen s, because in ac he e a e no ucks wi h oundwood d i ing on he oad whe e documen a ion may be con olled by police o o he s uc u es; he oundwood is no lea ing he o es . This kind o si ua ion is common in Fa Eas and Sibe ia [14]. I should be no ed ha cu en ly amendmen s o he Fo es Code ep esen only a legal pla o m o appea ance o eal equi emen s ela ed o coun ing, ma king and anspo ing o wood. Cu en ly, he amendmen s include only a gene al desc ip ion o he equi emen s o be implemen ed. Real equi emen s should be de eloped in he u u e by he go e nmen and he Minis y o Na u al Resou ces o he Russian Fede a ion [15]. Resou ces and Technology 12 (1): 37-46, 2015 ISSN 2307-0048 h p:// .pe su. u 44 The EUTR came in o o ce a he beginning o 2013 bu did no wo k a i s ull capaci y un il he au umn 2013. Fo ins ance, he e was no ecognized Moni o ing O ganiza ions (MO) un il he end o Augus 2013 [16]. Two moni o ing o ganiza ions begun o unc ion on he 19 h Augus 2013 [17]: NEPCon in all EU Membe S a es and Conso zio Se izi Legno-Sughe o in I aly. Consequen ly, as his esea ch was conduc ed in Oc obe -No embe 2013, he e was only one o ganiza ion which could de elop DDS o Ope a o s and check Ope a o ’s DDS in Eu ope. A he same ime i is logical o suppose ha i is physically impossible o con ol all Ope a o s wo king in he Eu opean ma ke . A he end o 2014 al eady 4 Moni o ing O ganiza ions exis ed [17]. I should be no ed ha na ional legisla ion in some EU coun ies is s ill unde p epa a ion as well and he e o e he EUTR is no wo king in ull e ec . “The ull impac o he EUTR will only be isible once he en o cemen mechanisms and na ional legal amewo ks a e ully implemen ed acco ding o he plan”, obse es P og amme Manage o he NEPCon Fo es Legali y (M . Slo h) [18]. Because o lack o s ic con ol, some Russian expo e s who know he equi emen s o he EUTR use as an acco dance measu e hose sys ems, which hey decided o be app op ia e as DDS. Fo example, as was no ed by he Go e nmen Rela ions -di ec o o he A changelsk pulp-and- pape plan (Na alia Pinjagina), hei company uses FSC ce i ica e as a gua an ee o legali y o wood and as a passing icke o en e ing he Eu opean ma ke [16]. Possibly due o he same eason some Ope a o s did no make any demands ela ed o implemen a ion o he EUTR o expo e s. The e is no uni ied o m o DDS, and e e y Ope a o may in e p e i in hei own way. In appea ance o o he MO he si ua ion should be changed. Mos p obably, mo e ac i e in e es in he de elopmen o in e nal acing sys ems o wood o igin and usage o DDS p o ided by MO will appea . In 2008 in he Uni ed S a es, amendmen s o he U.S. Lacey Ac we e adop ed. Those amendmen s we e ela ed o e mina ion o en e ing illegally ob ained phy ogenic p oduc s in he U.S. ma ke (including wood and wood-based p oduc s). Illegally ob ained p oduc s mean ge ing ma e ials used o p oduc wi h iola ion o he law, iola ion o he egime o specially p o ec ed na u al si es, e c. Consequen ly, he Lacey Ac and he EUTR ha e simila aims, and as a as a pa o he Lacey Ac ela ed o illegal imbe has been ope a ing o almos 5 yea s, i is al eady possible o make conclusions abou i s e iciency. Acco ding o Clima e Ad ise s’ Managing Di ec o (Glenn Hu owi z), Lacey Ac has led o he ollowing posi i e consequences [19]:  Lacey Ac has helped o c ea e jobs in he U.S. o es p oduc s indus y by elimina ing illegal and un ai compe i ion. U.S. ha dwood expo inc eased by 70% while in o he coun ies expo didn’ inc ease o e en dec eased;  Con ibu ion o decline o illegal logging wo ldwide consequen ly has helped o dec ease g eenhouse gas emissions;  Sa ing o es a eas wi h endange ed wildli e such as ige s, o angu ans, lemu s. P obably simila esul s could be expec ed om ealiza ion o he EUTR. Cu en esea ch is based on e iewed li e a u e ela ed o comba ing agains illegal logging and o he impac o he EUTR on Russian companies expo ing wood and wood-based p oduc s; and on he esul s o he ques ionnai e ca ied ou among he Russian companies expo ing wood and wood-based p oduc s in o EU. U ilized esea ch me hods allow us o e alua e he in luence o he EUTR on he Russian expo ing companies. Disad an age o he ques ionnai e me hod used in he cu en esea ch is ela ed o he low con idence le el esul ing om he small numbe o he esponses om he expo ing companies. Some o he agg ega ed da a ob ained om he ques ionnai e a e he same as he opinions o he companies announced in hei in e iews o in e ne publica ions. Fo ins ance, he opinion o he Resou ces and Technology 12 (1): 37-46, 2015 ISSN 2307-0048 h p:// .pe su. u 45 A changelsk pulp and pape plan ega ding sui abili y o use FSC o implemen a ion o he EUTR equi emen s is he same as he agg ega ed opinion o expo ing companies ob ained om he ques ionnai e. The e o e, i would be possible o assume ha answe s o he o he ques ions e lec he eali y. EUTR was in oduced less han 2 yea s ago, and he e is li le in o ma ion how he EUTR in luences expo e s. Cu en ly, he e is no clea e idence ha illegal imbe is no en e ing he EU ma ke s om Russia. I is possible o judge only h ough indi ec e idence, such as ejec ed supplie s. EUTR may be add essed simila ly o he opinion exp essed abou he amendmen s o he Lacey Ac : “Will his law e ec i ely in luence he illegal logging? I la gely depends on p eceden s o penal ies o un ai Ope a o s which could appea in he nea u u e” [20]. The ques ionnai e used in he cu en esea ch could be used again a e appea ance o p eceden s ela ed o he un ul illed EUTR equi emen s and a e s a o ac i e and p ope wo k o compe en au ho i ies and moni o ing o ganiza ions. I could allow us o ace endencies in companies’ a i ude owa ds he EUTR and changes in hei business p ac ice ela ed o he necessi y o s ic e implemen a ion o he equi emen s o he EUTR. Acknowledgmen s This a icle is based on he Mas e Thesis o Elena Nesha ae a in he Finnish-Russian C oss- Bo de Uni e si y (www.cbu. i). Au ho s hank he Russian companies who esponded o he ques ionnai e. Re e ences 1. Go e nmen ba ome e .2012.Illegal logging issue.Re ie ed om: h p://ba ome e .ww .o g.uk/wha _we_do/go e nmen _ba ome e / he_illegal_logging_issue/ [Ci ed 29 Decembe 2013]. 2. UNECE. 2013. Fo es P oduc s Annual Ma ke Re iew 2012-2013.Gene a Timbe and Fo es y S udy Pape 33. Gene a, 133 p. 3. WWF. 2008. Illegal wood o he Eu opean ma ke . An analysis o he EU impo and expo o illegal wood and ela ed p oduc s.WWF, 43 p. 4. FSC Russia.2010. Scena ii az i ija sobi ii, s jazannih s Reglamen om EU № 995/2010 po p o i odeis iju o go le nezakonno zago o lennoi d e esinoi, [Scena io o de elopmen s ela ed o he EU Timbe Regula ion № 995/2010 connec ed o he comba ing ade illegally ha es ed imbe ]. Re ie ed om:h p://www. sc. u/upload/ e e ence%203.[Ci ed 10 No embe 2013]. 5. Eu opean Comission. 2013. GUIDANCE DOCUMENT FOR THE EU TIMBER REGULATION. Re ie ed om: h p://ec.eu opa.eu/en i onmen / o es s/pd /Final%20Guidance%20documen .pd [Ci ed 1 Sep embe 2013]. 6. Godden, B. 2004. Sample Size Fo mulas. Re ie ed om: h p://williamgodden.com/samplesize o mula.pd [Ci ed 02 No embe 2013]. 7. FAO. 2012. The Russian Fede a ion o es sec o . Ou look s udy o 2030. Rome, 93 p. 8. Regula ion (EU) No 995/2010 o he Eu opean Pa lamen and o he Council o 20 Oc obe 2010. 22.11.2010. O icial Jou nal o he Eu opean Union, pp. 23-34. 9. Minis y o na u al esou ces o he Russian Fede a ion. 2013. Minp i odi Rossii polnos ’u za e shilo abo u nad p oek om pop a ok k p oek u ede al’nogo zakona № 168903-6,