Russia and the EU have failed to reach an agreement on timber duties, trade commissioner Peter Mandelson has said.
Russia is currently attempting to gain entry to the World Trade Organisation (WTO), but the issue of increased timber export duties continues to be a sticking point for progress.
Mr Mandelson made his announcement following meetings in Moscow and said that further talks would take place within the next month.
Meanwhile, Russian president Vladimir Putin said at a press conference on February 14 that Russia’s desire to improve the country’s wood processing capabilities was “completely normal”.
A major reason behind Russia’s export duties on roundwood is to boost domestic timber processing.
The Bank of Finland has said the impact of duties could create a 20% shortfall of wood raw material in the Finnish timber industry, with as many as 16,000 jobs at risk.
