Russia backs down on timber issue
After massive Finnish protests against the planned boost in export tariffs on round timber, the Russian government this week announced that it will postpone the measure intended to stimulate Russian timber processing.
In his meeting with Russian Prime Minister Vladimir Putin yesterday, Finnish Premier Matti Vanhanen got confirmations that Russia will not implement its boost in timber export tariffs from 1 January 2009 as planned.
The timber issue has been a major source of dispute between the two neighbors over the last months. While, Russia argues that the tariffs are needed in order to stimulate domestic timber processing, Finland and several other major timber importers say that the measure harms free trade. Both the Finnish and Swedish timber industry has become dependent on the Russian timber.
In the meeting, Vladimir Putin said that the implementation of the tariffs would be postponed by 9 to 12 months, Helsingin Sanomat reports. The Russian premier argued that the financial crisis is what has made him change his mind on the issue. However, as commented by the Moscow Times, the Russian announcement also shows a conciliatory line ahead of today’s EU-Russia talks in Nice, France.
In the joint press conference after the meeting, Putin highlighted that Russia is determined to facilitate better customs relations across the borders and that a major plan on the issue is in the pipeline, the Russian government website reports.
Finland now hopes that the two countries will agree on a deal on wood tariffs. -Now there is time to negotiate on a permanent solution, Minister of Foreign Trade Paavo Väyrynen told Helsingin Sanomat.
