Russia will cancel export quotas for softwood logs from January 1, 2022

On June 19, the Deputy Prime Minister of the Russian Federation Abramchenko announced during a work inspection in the Zabaikal region that the Russian Federation’s policy will cancel the export quota for softwood logs from January 1, 2022.

　　According to Abramchenko, the Russian Federation government believes that practice shows that the quota system is not an effective measure, and many companies that do not have export quotas have greatly strengthened the ability of deep processing of wood. Therefore, the Government of the Russian Federation has made a decision to cancel the export quota for softwood logs from January 1 next year to adjust export tariffs.

　　 Since Russia joined the WTO in 2012, the country’s timber exports have begun to implement a quota system. Enterprises with export quotas enjoy a 6.5% export tariff preference, while companies outside the quota have to pay high export tariffs that have increased year after year. Only companies with wood processed products that account for no less than 20% of the total export value of unprocessed logs and wood products are eligible for export quotas, and the requirement for this percentage is raised to 35%.

　　According to the original vision of the Russian Federation government, the original intention of implementing the export quota system is to promote enterprises to build timber deep processing production facilities, thereby creating more employment opportunities. Abramchenko also stated that starting from July 1, 2021, Russia will impose a 10% export tariff on precious woods with moisture content higher than 22% on deciduous and coniferous leaves. At the same time, the number of checkpoints set up specifically for timber exports will be limited.

　　 At the end of September 2020, after the meeting on the development and legalization of the Russian forestry complex was held, Russian President Vladimir Putin announced that from January 1, 2022, Russia will ban the export of unprocessed or rough processed softwood logs and precious hardwood timber.

　　 Since 2021, Russian customs has seized 7 cases of illegal timber export in Altai Krai, involving smuggling of logs exceeding 500 cubic meters.