May 30, 2007. /Lesprom Network/. Russia and Finland haven’t yet agreed on customs duties on logs, Russia prime minister Mikhail Fradkov said on May 29 on the press conference in Helsinki after negotiations with his Finnish counterpart Matti Vanhanen. In course of the negotiations Mikhail Fradkov discussed moot points concerning logs export and railway tariffs on freight service. Russia declines to reduce logs tariffs. This decision threatens Finnish part with losses and Russia with entry into WTO. Russia is ready to compromise in the most sensitive issues for the Finnish industry (pine and birch) and to postpone introduction of duties till 2011. In exchange for it Russia asks Finnish part to invest in Russian wood-processing. Deputy minister has even named possible objects for investments in Kostroma, Vologda and St Petersburg. However, Mikhail Fradkov and Matti Vanhanen haven’t managed to reach agreement. “We haven’t come to agreement but we’ll continue negotiations”, Russian minister comments results of the meeting. The parties continue to argue about wood species and grace period for export duties. Such incompliance may threaten Russia with problems with EU. Finnish politicians and industrialists menace to block Russia’s entry into WTO in connection with forest question. The initiative belonged to the members of Finnish forest industry federation. According to its president Anne Brunila, tariffs hike contradicts with preliminary agreement of 2004 between Russia, EU and WTO.