Finnish and Russian negotiators have failed to agree on Russia’s plans to raise export duties on raw timber during talks in Moscow.
Finnish foreign trade and development minister Paavo Väyrynen met Russian minister of economic development and trade Elvira Nabiullina to discuss the dispute.
Mr Väyrynen is reported to have said talks on timber tariffs and border traffic had been “frank and intense”.
Russia is understood to have said it was not prepared to draw up an independent agreement with Finland concerning timber tariffs. Instead, the dispute will be handled at the European Union level. Representatives from the European Commission and Russia are to discuss the issue soon.
Mr Väyrynen said he told Russian representatives Finland must compensate its forest industry for the financial losses.
