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22 May, 2021 11:29

Russia to introduce export duties on green lumber sales to rein in price growth

Russia to introduce export duties on green lumber sales to rein in price growth

An export tax of as much as 10% will be imposed on sales of several sorts of Russian wood, according to a government order signed by Prime Minister Mikhail Mishustin on Friday.

The export duties on unprocessed timber with a moisture content exceeding 22% come into effect starting July 1, and remain in force until the end of the current year.

The measure will reportedly help to limit exports of rough unprocessed wood produce, as well as to hold down the price for it in the domestic market. The duties are also expected to make businesses shift focus to manufacturing wood products with high added value.

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Humidity limitation is set to separate air-dried lumber from kiln-dried lumber, which is commonly much more expensive.The cabinet is reportedly working on broader restrictions on exports of wood.

Last year, Russian President Vladimir Putin introduced legislation that would initiate a complete ban on exports of softwood and high-value hardwood logs from the country beginning January 1, 2022. Once established, this could also expand to include untreated or roughly processed green wood.

The decline in roundwood exports is expected to stimulate additional economic activity within Russia and help to mitigate illegal logging.

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