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FEFD timber merchants will receive benefits due to coronavirus

FEFD timber merchants will receive benefits due to coronavirus

The Ministry of Industry and Trade of Russia and the Ministry of Eastern Development and Development have proposed short-term measures to support the timber industry in the Far East due to the coronavirus pandemic. Participants in this area will be provided with benefits that will be valid until the end of the year.

At a meeting on stimulation of the timber industry in the Far East, which was held by Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District Yury Trutnev, authorities announced the allocation of an additional tariff quota - two million cubic meters for 2020. They will be distributed among companies that have not yet received a license to export wood under the quota for this year.

Also, timber merchants will receive quotas for sawn timber with the simultaneous removal of pulpwood from the quota. The rate of duty on it will be zero. The measures are being introduced because of the impact of the coronavirus pandemic on the economy, and also because of the slowdown in business activity in China, which is the largest consumer of Russian timber products.

As was noted at the meeting, the export of forest products decreased due to the coronavirus pandemic in January-February this year: roundwood export decreased by 27,4% to 349 thousand cubic meters. The meeting participants noted that this is more due to the external economic situation and the effect of the ban on issuing phytosanitary certificates. As for the export of timber products, in January-February 2020, the demand for sawn timber fell by 17,9% to 388 thousand cubic meters.

Since the beginning of 2020, the timber industry in the Far East faced with losses. They are caused by several factors: a collapse in wood prices, the introduction of new phytosanitary requirements, and the closure of borders with China's largest consumer of Russian forest. Demand for timber in China fell by about 20% -50%, and production in the Middle Kingdom literally froze since the beginning of the year.

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