Mar 01, 2021
From January 1, 2022, Russia will completely ban the export of unprocessed coniferous forest logs. The Kremlin has proposed more than once to ban the export of logs, but for various reasons, it has not been implemented. Although this proposal, or even the current 60% tariff increase, is a disastrous blow to the Russian timber industry, the implementation of this measure is certain. It is not only Russia's local timber enterprises that have been hit, but also a large number of Chinese timber factories. Over the years, a large number of Chinese businessmen from Northeast China, Shandong and Singapore have set up timber factories in St. Petersburg, Siberia, the Far East and other regions. Because of cheap labor and rich forest resources, they have made a lot of money.
Russia will completely ban the export of coniferous and valuable hardwood logs from Russia on January 1, 2022, and prepare a legislative and regulatory framework to set strict barriers to the uncontrolled export of raw wood. In addition, a preferential loan scheme has been implemented since January 1, 2021 to promote the modernization of wood processing industry and the upgrading of Russian wood processing industry.
Valentina, speaker of the Council of the Russian Federation, proposed a complete ban on the export of logs during the formulation of the new forest law at the beginning of last year, but this idea was not supported by the Russian government. In November 2017, Russian Minister of natural resources Dmitry proposed to stop exporting log timber to China (China accounts for 70% of Russian timber supply).
At present, Russia levies export tariff on logs, and the tax rate rises to 80% after exceeding the rated quota.
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