OREANDA-NEWS. October 27, 2009. Russian Prime Minister Vladimir Putin said that Russia would extend a moratorium on planned timber export duties for another year, easing the risk of new trade tensions with Finland and the EU, as Reuters agency informed Lesprom Network.

Russia had planned to raise export duties threefold from 2009 to boost its own timber processors but had already delayed the move a year ago, following pressure from both Brussels and Helsinki which feared damage to the European processing sector.

"Today I can say that this moratorium will remain in effect for the next year," Putin said, before a meeting with Finnish Prime Minister Matti Vanhanen to discuss the topic.

Vanhanen said differences remained between on the best approach to regulation of world trade but that Helsinki supports Russia's bid to to join the World Trade Organisation.

He told a news conference he was satisfied with Russia's decision on timber duties.

Vanhanen also said his government would take a decision on the routing through Finnish waters of the Nord Stream gas pipeline project by the end of the year.

Russian media reported last month that the government was already discussing further delays after the economic crisis made it impossible to build domestic processing facilities quickly.

Putin said the moratorium gave foreign processors more time to build plants in Russia but said the moratorium on duties would not stay in place indefinitely, in his address to a timber industry forum.