Finland has already expressed its concerns that Russia will be in breach of its World Trade Organisation (WTO) entry terms if it goes ahead with the increase, which will see prices per m3 go up from €4 to €50 in 2009.

And Mr Mandelson’s office has stated that the issue of wood export duties continued to be a stumbling block for the country’s ascension to the WTO as it was in breach of papers signed three years ago that said Russia would not impose such duties.