Press releases, 26.6.2008

Väyrynen: Use of State funds to repay industry for wood tariffs under investigation

Minister Paavo Väyrynen Minister for Foreign Trade and Development Paavo Väyrynen told journalists at a press conference held at the Ministry for Foreign Affairs on 26 June that the use of State funds to repay industry for wood tariffs is being investigated. According to Väyrynen, the Ministry is also investigating whether the refund of export tariffs could be financed by adopting a vehicle-specific transit fee for transports to Russia by way of Finland.

In Väyrynen’s view, Russia’s announcement that Finland’s proposal of a tariff scheme for birch based on end use cannot be realised is very unfortunate. Väyrynen was informed of Russia’s negative stand by Elvira Nabiullina, Minister for Economic Development and Trade of Russia, on 25 June.

Väyrynen stated that repayment of wood tariffs and transit fees on transports could be adopted already in autumn of this year. Transit fees could be raised correspondingly if increases in export tariffs are implemented next year. According to Väyrynen, it might be possible to finance the entire tariff repayment scheme on the basis of income generated by transit fees. Repayment could apply to tariffs exceeding the level set in the agreement reached between the EU and Russia in 2004.

A permanent solution to the issue of wood tariffs should be found as part of Russia’s WTO membership negotiations. From the perspective of Finnish industry, however, the situation is becoming totally unbearable, Väyrynen stressed.