|
|
 |
Russia-Finland Timber Talks Fall Through
Russia will press ahead with its plans to double export duties on raw timber, Prime Minister Mikhail Fradkov said after talks in Helsinki on Tuesday. Finland argues that Russia’s decision violates rules of the World Trade Organization where Moscow is seeking membership. The Russian prime minister has confirmed Russia’s unbending stance on the issue but agreed to more talks.
Russian President Vladimir Putin ordered higher export duties in a decree last year to encourage more investment in domestic processing. The move will take effect on July 1 as the duties will be gradually increased over the next two years.
“The decision would have a negative impact on the Finnish economy and would harm our bilateral cooperation in the forest industry,” Finnish Prime Minister Matti Vanhanen said at a news conference after talks with his Russian counterpart. He also noted that such a decision would be “in conflict with commitments made by Russia for joining the World Trade Organization. Mr. Vanhanen also said his government hoped the issue would be settled at the Russia-EU level.
The increase in duties from 4 euros ($5.40) to 10 euros per 1 cubic meter is aimed at changing Russia from a raw material exporter into a value-added products exporter, according to Mikhail Fradkov.
One-fifth of unprocessed timber used in Finnish industry is imported from Russia. Timber trade accounts for 25 percent in Finnish-Russian commodity turnover. Finnish investments in Russia reached €2 billion in 2006, half of which was invested in timber processing.
“We will introduce these duties sooner or later, and that’s certain,” Mikhail Fradkov said. “We want to encourage Russian businesses to focus on domestic timber processing.” After confirming the unbending stance, the prime minister, however, pledged that talks on the issue would continue.
Prime Minister Mikhail Fradkov, who was in Helsinki on a one-day working visit, also discussed international issues and EU-Russia relations.
www.kommersant.com
All the Article in Russian as of May 30, 2007
|
|
|
