A governmental decree which gradually increases export duties on raw timber up to 30 percent in 2010 came into force this March.
Photo: Nikolay Cyiganov
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Finland Walks Out from Russian Forests
Finnish timber merchants are protesting a gradual hike in roundwood export duties from Russia, threatening with obstructing Russia’s way to the WTO. Russian industry officials are going to discuss the timber ultimatum this week with Finnish companies which are eyeing Baltic states and Latin America as alternatives for timber purchases. The Russian timber industry may face grave financial constrains in case Finland decides to stop buying timber in Russia.
The Finnish Forest Industries Federation (FFIF) which unites the country’s largest companies such as Metsaliitto and UPM-Kummene, says an increase in export duties “does not meet Russia’s interests in the accession to the WTO”. Director of the FFIF’s Russian office Anneli Kotonen and Finemor’s head Kari Ketola said at a Friday meeting with the Russian Trade and Industry Chamber that the duties increase plan may force Finnish firms to stop buying Russian timber in 2010 when the duties are to reach their highs.
A governmental decree which gradually increases export duties on raw timber up to 30 percent in 2010 came into force this March. The minimum export duties will be raised on softwood and veneer logs. President Vladimir Putin pushed for the hike as a measure to cut raw timber exports and encourage timber processing in Russia.
Russian softwood export duty will go up from ˆ4 to ˆ10 per 1 cu. meter in July, which will increase the duties that Finnish importers pay from ˆ30 million in 2006 to ˆ100 for all timber exports, Mr. Ketola said on Friday. Finland may decide to import timber from Baltic countries and Latin America by 2010, Anneli Kotonen said.
Finnish firms buy 10 percent of Russia’s total timber exports. A possible walkout of these companies may ruin scores of Russian exporters.
The Russian Industry and Energy Ministry says that claims of Finnish timber merchants cannot be connected with Russia’s accession to the WTO. However, unofficial sources report that the EU and Russia discussed the issued at last week’s WTO talks.
The Industry and Energy Ministry is to meet Finnish companies this week to discuss the issue.
www.kommersant.com
All the Article in Russian as of Mar. 19, 2007
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