Russia’s membership to the World Trade Organization (WTO) is not expected to reflect in rising timber imports until next spring what it signals is a reduction in high tariffs on timber exports from Russia. Source: UUTISET
While the high tariffs were in force many companies in Russia specialising in harvesting timber for export went out of business.
As the announcement was made of Russia’s accession to the WTO, trucks in Vyborg were being loaded with birch timber for delivery to Finnish customers.
Finnish forest industry companies estimate that imports of timber from Russia could double within a few years though these are unlikely to start rising significantly until the next northern hemisphere spring.
“While tariffs were high, harvesting fell off and stocks are now low,” said Juhani Hongisto, who is in charge of timber acquisition from Russia for the forest products company UPM.
“Of course, many business stopped operations and many gave up their leases, but even so, better export opportunities will open more opportunities for harvesting timber,” he said.
Russian tariffs on coniferous wood have fallen most, in practice by 50%. Cheaper timber imports should boost the entire wood processing industry in Finland.
“This is sure to be a shot in the arm and invigorating. And, I believe that this will have a role in production capacity being retained in Finland,” said Pekka Rajala, UPM’s director of timber acquisition for northern Europe.
Russia’s WTO membership will mean easier access for Finnish companies to Russian markets. For example, highly processed paper and carton products are in high demand in Russia and lower customs charges mean narrower price differences.
