The massive export tariffs that Russia plans to impose on raw timber have become a major stumbling block in negotiations between the European Union and Russia on Russia's possible membership in the World Trade Organisation, Helsingin Sanomat reports. Finnish industry is highly dependent on imports of Russian round timber. The raise in Russian export tariffs on timber, to come into effect next summer, will hit hard on the Finnish forest processors.
According to Helsingin Sanomat, The European Commissioner for Trade Peter Mandelson raised the wood tariffs at a meeting with Russian Minister of Economic Development, German Gref at the St. Petersburg Economic Forum on Sunday.