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Russia to raise export duty on roundwood
POSTED: 11:32 a.m. EDT, May 30,2007

Visiting Russian Prime Minister Mikhail Fradkov said here Tuesday that Russia would go ahead with raising its export duty on roundwood.

The aim of the increase was to transform Russia from a raw material exporter to an exporter of higher value-added products, he added.

At the invitation of Finnish counterpart Matti Vanhanen. Fradkov talked about bilateral timber trade, and transport and energy issues as well.

Vanhanen said Finland was very concerned about Russia's wood export duty plan, adding that the decision would have dire consequences on the Finnish economy and damage forest sector cooperation between the two countries.

According to reports, a fifth of the roundwood used by Finnish paper, board and pulp mills is imported from Russia. Currently, the duty on raw timber is 4 euros per cubic meter, it will increase by 6 euros to 10 euros per cubic meter starting July. In just 2 years, that figure will climb to 50 euros.

From:xinhua
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