The European Commission has requested consultations with Russia within the framework of the World Trade Organization (WTO) concerning Russian export restrictions on roundwood. According to a statement issued on 21 January, the EU opposes the significant increase in export duties applicable to roundwood and the drastic reduction in the number of border crossing points through which exports of timber products can pass, from more than 30 to just one - Luttya in Finland. By banning the use of existing border crossing points, the European Commission is of the opinion that Russia is violating a WTO principle that prohibits such restrictions.
On the other hand, the export duties on fresh lumber in force since 1 July are not material to the EU’s request, as they are initially limited until 31 December 2022.
The consultations requested by the EU are the first step in the WTO dispute settlement procedure. If these do not lead to a satisfactory solution, the EU can request the establishment of a WTO panel to rule on the issue.
Vladimir Ilyichev, Russia’s deputy minister for economic development, has said in a statement on the EU complaint that, from the perspective of Russia, the measures to reduce roundwood exports are in line with WTO regulations. Government representatives are to explain the measures applicable to roundwood exports during the consultations requested by the EU.
