Increased demand for Finnish timber

Finnish forest owners are preparing to meet the forest industry's increased demand for domestic timber. Russian export duties on timber will continue to increase next year and Finland imports 20 - 25 % of its raw timber from Russia.

The Russian government plans to stick to its intention to apply export duties on timber. The first increases came into force at the beginning of July 2007 and the next increases will take place at the beginning of April 2008.

From 1 April 2008 the duties will amount to 25 % of the value, but not less than 15 €. On 1 January 2009 the duties go up to 80 %, but not less than 50 €. From 1 January 2011 the 80 % duty will also apply to birch pulpwood.

The new export duties will result in serious problems for the Finnish forest industry, because imports from Russia make one fifth of industry’s timber consumption. Imports are estimated to cease entirely at the latest when the highest export duty enters into force.

The Central Union of Agricultural Producers and Forest Owners (MTK) says that domestic timber can almost entirely fill the gap caused by reduced imports from Russia. Because of the bleak future prospects forecast by the forest industry, the Finnish Government is looking for a political solution of the problem caused by the Russian export duties.