Prime Minister Matti Vanhanen says the question of Russian wood export tariffs must be resolved in the next few weeks or months. Vanhanen told YLE the Finnish forest industry did not have time to await the outcome of the issue in connection with upcoming Russia-WTO negotiations. The question of wood tariffs is a matter for the EU Commission. Intense talks between Russia and the Commission have taken place recently on the issue at both political and expert levels. Vanhanen noted it was a regrettable coincidence the talks are taking place in the run-up to Russian elections in early December. Russia would have to make serious concessions to the EU at a time of domestic political sensitivity, he said. If the proposed wood export tariffs are fully implemented, it could lead to an end of Finnish imports of timber from across the border. Further mill closures in Finland would be a likely consequence. Russia Favours Domestic Industry Prime Minister Vanhanen and Minister of Foreign Trade Paavo Väyrynen discussed the issue of wood tariffs with Russian Trade Minister Elvira Nabiullina on Thursday. Nabiullina reiterated the view that Russia wants an expansion of the forest industry on its territory in place of wood exports. The minister repeated the Russian offer to the Finnish paper industry to extend its operations across the border, noting the country had abolished forest industry export tariffs and offered various investment incentives. YLE
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