Russia is to impose new tariffs and embargoes on forestry exports. The Vancouver Sun reports that Russia intends to levy premiums on log exports from the country which could make timber from other areas more attractive to purchasers around the world.
While tariffs and restrictions may sound like bad news, the move by Russia could translate into very good news for forestry investors in nearby Baltic countries such as Estonia.
Dave Lewis, executive director of the BC Truck Loggers Association, told the newspaper: “Russia is a huge exporter of logs. A restriction in the amount of logs coming out of Russia will create demand elsewhere, so it could be an extremely positive thing.”
Under Russia’s new forestry rules, export tax on raw logs will increase from its current level of 25 per cent to 80 per cent from 1st January 2009.
Russia is currently the world’s biggest exporter of timber but the Vancouver Sun can see this changing. Those interested in Baltic forestry investment could find that Estonia and other Baltic countries represent an attractive proposition.
Not everyone is pleased at the news however. Finland is especially worried about the export tax increases, as they are currently enjoying a booming trade making paper from Russian wood.