Russia is preparing to lower its softwood log export taxes as part of a deal allowing it to join the World Trade Organisation (WTO), according to Wood Resource Quarterly (WRQ).
Russia was accepted into the WTO last December on the provision that it lowered export and import taxes on forest products.
Russia has not yet publicised the proposed changes, but WRQ said they involve lowering pine log export duties from 25% to 15% and spruce duties to 13%.
The changes are also expected to include a quota system which will allow 3.6 million m³of softwood logs to be exported to the EU at the lower tax, after which duties return to 25%. Outside the EU the quota is expected to be 12.4 million m³.
But despite the reduced taxes, WRQ believes Russian log export volumes are unlikely to return to pre-tariff levels due to challenging conditions in doing business with Russia, including corruption, political uncertainty, increasing log costs and infrastructure problems.
