Cheap Russin raw wood won't be more exported - head of Russian Federal Forestry Agency

- Are Russian forest business and its foreign partners ready for new conditions of wood coming-out which will be ones of the hardest in the world?

- This is  initial increase of export duties on logs. As you know the stiffening of the regime will be completed in three years. First estimations are the following: this position is generally applauded by Russian industrialists engaged in wood processing. Organizations specializing in logs export are certainly worried. But I think that by giving such notification and delay the government threw all into a dilemma: it’s time to establish wood processing.

The policy of  adjustment of export duties itself talks of one thing: these duties are implemented gradually and concern only roundwood. At the same time the production of initial processing has the same preferences that had earlier. If the entrepreneur isn’t very rich and doesn’t have enough proceeds to build a pulp-and-paper mill, nevertheless,  he is able to construct a simple civilized enterprise like sawmill. It gives opportunity to create in course of 2-3 years primary and secondary wood processing in Russia. It’s possible   in spite of the fact that the leeway is not very big.

- And how do feel foreign partners which are importing Russian wood?

- Concerning the countries which used our wood, mainly Finland and China, they surely have problems now. From 51 million cubic meters exported annually from Russia about 19-20 million were destined to China. It’s clear that China and Finland don’t want to give up with high revenues, but Russian raw wood will no more be exported at the price they want. At present the duty amounts to only 6.5% of the customs value, significantly below of that in Brazil, Canada the USA and other exporting countries.

-Will Russia be able to process all stocked wood if the export fall considerably?

- We can see now a great import substitution. For example, 80% of pulp exported returns in the form of paper, sacks, cardboard. Even if the wood-processing industry develops in this area it would be perfect. Now we practically don’t have  furniture produced in Russia. All other countries produce it from our wood.

Our market is developing dynamically, the consumption of wood is huge. It’s especially actual in connection with national project “Available  housing”. In the USA for one meter of house 0.7 cubic meters of wood is used.  And in our timber country wood products aren’t practically used. It’s a big gap that we have to fill.

- Has the volume of wood  export from Russia  increased on the threshold of introduction of new duties?

- Sure, in expectation of July 1 the enterprises try to export timber with minimum costs. It’s naturally and it isn’t necessary to dramatize. The growth is seen but it isn’t significant.