East Russia
China has very rapidly grown to become much the largest importer of timber from both eastern Russia (Japan had previously been dominant) and Russia as a whole - displacing Finland (which dominates western Russia's timber exports). This is partly to make up the deficit in supply prompted by logging bans in China and partly because China has been able to negotiate very cheap import prices.

China also imports half of Russia's pulp and paper exports. This creates a dilema because much of this probably derives from integrated forest-to-paper complexes that are now considering whether to seek FSC-certification - a transparent auditing system for which China has yet to provide other than rhetorical support..

Russia, which supplied almost 40% of China's timber imports during 2003, has a commanding negotiating position relative to China. Remarkably, Russia (including organised crime) appears not to have sought to take advantage either of this or of China's very large timber deficit by, for example, sharply increasing prices - the better to compensate for environmental damage (which is likely to be substantial) and help Russia's ailing economy. Russia is perhaps kow-towing to China in order to sell China - a nuclear power eligible to receive World Bank and Asian Development Bank subsidies - military equipment.

Japan, having previously imported three quarters of the timber exports of Russia's Far East and being unhappy that China now dominates timber production in that region, has only itself to blame. Like France in the Congo Basin, Japan had plenty of opportunity to protect its lucrative sources of supply by ensuring that forest administration in the region was robust and not corrupt - an elementary business failing.