Russia’s decision, which will see duties increased from the present €4/m3 to €50/m3 within two years, could lead to the loss of thousands of jobs within Finland’s forestry industry, according to the Finnish Forest Research Institute.
The move has also raised eyebrows as Russia is currently seeking to join the World Trade Organisation (WTO), which is against trade barriers.
Anders Portin, senior vice-president of sustainable development and resources at the Finnish Forest Industries Federation, told TTJ that the duty hike represented a “ very serious” issue for Finland.
“We are surprised that Russia put export rates up because they are negotiating to join the WTO,” he said.
“We think it’s clearly against the spirit of the WTO.”
Mr Portin said the issue was being taken up by the Finnish foreign affairs ministry and the European Commission as part of WTO talks.
Finland normally imports about one-fifth of its logs from Russia but the figures for 2005/06 showed Russian imports had increased to one-quarter.
Mr Portin said industry, government and forest owners were discussing the idea of subsidies and tax changes as a way of increasing domestic production.
