| Seattle, USA. April, 2010. Domestic softwood sawlog | | | | key message in the Prime Minister's statement was |
| prices have moved up in Russia in 2009 both in | | | | that Russia has no intentions of suspending the |
| Rouble and in US dollar terms. In the 4Q, the average | | | | export tax altogether as had been requested by the |
| pine log prices were over 30% higher than in the 1Q | | | | Finnish Government and by the EU. There are, |
| 09 (in Ruble terms they were up 15% during the | | | | however, indications that the duty-exemption for |
| year), as reported in the Wood Resource Quarterly. | | | | birch logs night be raised from top-diameter 15 mm |
| The major reason for the price jump was that | | | | to 24 mm. |
| production of lumber and plywood picked up towards | | | | In addition to a decline in demand for Russian logs, |
| the end of last year, and demand for logs was | | | | the wood supply increased in the second half of |
| slightly higher. | | | | 2009. The winter was very cold in western Russia |
| Softwood pulpwood cost also went up during 2009 in | | | | this year, which was good for logging. More timber is |
| Rouble terms, but hardwood pulpwood prices fell. | | | | expected to be available in the spring and with |
| The hardwood log market changed dramatically | | | | substantial log inventories, costs for both sawlogs |
| during 2009 because of the sharp reduction in | | | | and pulplogs can be expected to decline later in the |
| exports of birch logs to Finland. The export volumes | | | | spring. |
| were down by 8.5 million m3, or 72%, from 2008 | | | | Official statistics show that timber harvests were |
| mainly as a result of reduced demand for hardwood | | | | down 15% in 2009 as compared to the previous |
| fiber in the Finnish pulp industry. The Russian | | | | year. This seems low considering the substantial |
| government's ambiguity and lack of clarity regarding | | | | decline in log exports and the reduced domestic |
| the future policies of log export taxes has resulted in | | | | production of lumber, wood-based panels and pulp |
| a reluctance from foreign companies to invest in | | | | last year. WRI estimates that the actual decline in |
| Russia, and many forest companies are considering | | | | timber harvests last year was closer to 20%. |
| other regions for their long-term supply of wood | | | | Global timber market reporting is included in the |
| raw-material. | | | | 50-page publication Wood Resource Quarterly. The |
| Russia's Prime Minister Mr. Putin announced last year | | | | report, established in 1988 and with readers in over |
| that the current log export tax for softwood timber | | | | 25 countries, tracks sawlog, pulpwood, lumber and |
| will remain at 25% of the log value (with a minimum | | | | pellet prices in key regions around the world and also |
| of €15/m3) for 2010. He also hinted that this tax | | | | includes regular updates of the latest developments in |
| might be extended to 2011 if the demand for Russian | | | | international timber, pulp, lumber and biomass |
| forest products had not improved by that time. The | | | | markets. |