EU challenges WTO over Russian export restrictions

BRUSSELS, January 21, Reuters - The European Union has launched a challenge to the World Trade Organization on Friday over Russian export restrictions on wood products that the bloc says are illegal and harm its wood processing industry.

It is the second EU complaint against a US company at: www.reuters. The com business wto-review against Russian measures-state enterprises -- 2021 -- 12 - 20 over Russia to the WTO in the past year comes as the bloc and its western allies threaten Moscow with strong financial measures if Russian troops invade Ukraine.

The measures were announced in October 2020 but were not successful, according to the European Commission, which oversees EU trade policy. They entered into force this month.

Russian President Vladimir Putin ordered that exports of unprocessed hardwood and coniferous trees be banned from the start of 2022 in order to support its own wood processors.

The EU has increased Russian export duties to 80% from its WTO commitment of a maximum of 13 -- 15% for certain quantities of shipments.

The Commission said that Russia had reduced the number of border crossing points handling wood exports to the EU from more than 30 to only one, with Finland.

The Russian restrictions are highly detrimental to the EU wood processing industry, which relies on exports from Russia, and creates significant uncertainty on the global wood market, the Commission said in a statement.

The parties are involved in a formal consultation period when the WTO challenges begin. If the dispute does not resolve, the EU can request a WTO panel rule on the matter.