Russian logs going out of the country will now be slapped with a 6.5 per cent export duty. It will be increased progressively and could reach as high as 80 per cent by 2021
The new customs law deters log exports and encourages wood processing in the Far East regions.
However logs unsuitable for processing are exempted from this duty but the volume is capped at four million cubic metres per year. Species such as whitewood and larch are also duty free.
China buys a significant volume of logs from Russia. The new duties will likely see Chinese demand shift to other supplying countries such as North America and New Zealand.