FFIF: Positive outcome to Russian timber export duty issue

Nov 25, 2010. /Lesprom Network/. The timber export duty issue, a matter that has hampered Russian-Finnish forest industry cooperation for quite some time, was resolved as part of WTO negotiations between Russia and the EU, the Finnish Forest Industries Federation said in a press release received by Lesprom Network. “Russia's timber duty decision is a positive result from the perspective of the Finnish forest industry. According to the information available at the moment, effects of the duties will not focus on timber grades, which are imported into Finland, as heavily as before. Russian export duties on hardwood will decrease to a quarter of the current level. Duties on softwood will decrease by half", says Timo Jaatinen, Director General of the Finnish Forest Industries Federation. The Finnish forest industry has, however, already adjusted its operations to reduced timber imports from Russia and relies on domestic raw materials to a very large extent. A recovery in Russian timber imports is now dependent on developments in forest industry exports and the cost competitiveness of both domestic and Russian timber. Over the long term, cooperation between the forest sectors of Russia and Finland is in the best interest of both countries. From the perspective of investments, the most critical issues are the removal of all business-negative export duties and trade barriers, a focus on the development of infrastructure as well as the establishment of sufficient guarantees to the continued and reliable supply of wood raw materials for decades to come. The forest industry of Finland has so far invested over Euro 1 billion into Russia. Its investments have targeted the sawmill and panel industries as well as the paperboard industry in particular.