According to a Russian government order signed by Prime Minister Mikhail Mishustin on Friday (5-21-21), an export tax as high as 10% will be imposed on the sales of several kinds of Russian wood. Starting on July 1st, 2021, the export duties on unprocessed timber with a moisture content exceeding 22% will begin and remain in for until the end of the year. The reported purpose of the export duties is 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. The decline in roundwood exports is expected to stimulate additional economic activity within Russia and help to mitigate illegal logging. 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.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Russia to introduce export duties on green lumber sales to rein in price growth