Russian Authorities May Restrict Pulp and Paper Exports

 

According to a report this week by the FORDAQ Timber Network, Brussles, Belgium, the Russian MIT (Ministry of Industry and Trade) discussed the possibility of imposing export duties for paper and liberalization of consumable materials imports. as reported by RIA Novosti. The issue was brought up by a sudden paper price increase in Russia. Reportedly, prices for some types of paper increased by more than 60% during a four month period starting from September 2014.

Representatives of the Russian PPMs believe that among other reasons for a paper price hike should be the imported raw materials needed for paper production, higher interests for loans, and the current export extra profitability connected to ruble devaluation.

The Russian ministry thinks that a 15% - 20% pulp and paper price increase is within normal range, while the prices going up by 50% may indeed be called "undermining." At the moment, the Russian Federal Antitrust Service is investigating the matter and is trying to understand whether the reasons for increasing prices reported by the Russian PPMs are valid. "What’s going to happen to companies that have increased prices by more than 50% remains unclear," said Gennady Kudy, deputy director of the Printed Press Authority in Russia.

MIT has instructed its departments to address the export duties issue for particular types of pulp, paper, and paper products to keep exports within healthy limits. In the meantime, duties for consumable materials imports may be decreased.