Putin indicated that the one-year moratorium on a planned increase in the tariff planned for 2011 might also be postponed for another year.

Russia will keep tariffs at this year’s level of 15 euros per cubic meter. Russia's government announced in 2006 that the export duty on raw timber would be increased more than three-fold to 50 euros per cubic meter in 2008.

At the Finnish-Russian Forest Summit, representatives of the Finnish forest industry said the concessions are inadequate and has reiterated calls for tariffs to be removed completely. Russia, however, does not intend to abandon import tariffs on raw timber but keep them at current levels.

Prime Minister Putin says Russia remains committed to the introduction of higher duty on raw timber when market conditions allow that as part of the government efforts to diversify industrial production.

Russia implemented the tariffs as a means to encourage additional western investment in the country’s forest sector. So far, the main impact of the move has been a sharp decline in Russian wood exports to Finland.

Putin and Finland’s Prime Minister, Matti Vanhanen discussed the wood tariff issue on Sunday during a meeting of forest producers aimed at encouraging greater co-operation and free trade in the sector.

In addition to Matti Vanhanen, several other government ministers attended the summit, including the Minister for Economic Affairs, Mauri Pekkarinen. A large delegation of Finnish businessmen, experts and officials also attended.