Russia hikes duty on plywood imports from 'unfriendly' nations to 50% in 2023 from current 9%-12%

MOSCOW. July 25 (Interfax) - The rate of import duty on plywood from 'unfriendly' countries will be 50% through the end of 2023. The relevant decision has been approved by the government, the press service for Russia's Economic Development Ministry said in a statement.

The current duty on plywood imports to Russia is 9%-12% (depending on the type of plywood), the ministry said.

"According to the Russian Industry and Trade Ministry, the implementation of this measure will increase the use of domestic wood in the production of plywood, which will contribute to the implementation of the task set by the Russian government to further increase deep processing of wood," the ministry said.

It is envisaged that the restriction of imports will lead to increased capacity utilization at domestic plywood production facilities, which "in current conditions will make it possible to retain industry personnel, protect capital investments and continue further work on the development of the industry," the statement said.

The government has also set a 35% duty rate for polyurethane construction components imported into Russia from unfriendly countries until the end of the year (now it is 6.5%).

The same government decision increased the import duty on purified glycerin from 5% to 35%. "The market began to supply purified glycerin at an understated price, which caused difficulties for the sale of domestic products," the Economic Development said, citing the Industry and Trade Ministry. "The introduction of this measure will allow enterprises to offer healthy price competition in the market, provide consumers with quality goods, and also allow for continued investment in further technological development," the ministry said.

All decisions on updated rates will enter into effect seven days after the official publication of the government's decision.