Russia has once again decided to reduce its import duty on
coated paper from 15% to 5%.
The decision, which was taken on March 19 by the customs
union which Russia formed with Belarus and Kazakhstan, will come into force 30
days from that date. It will be valid for nine months, until January 19, 2014. The measure is aimed at stimulating the development of the domestic publishing industry.
The Kama mill in the Perm region launched its 86,000 tonne/yr LWC PM in 2012, but had to stop production shortly after the start-up due to the financial difficulties of its then managing company Investlesprom.
Ilim Group, which is rebuilding a second-hand PM at its Koryazhma mill in the Arkhangelsk region, is expected to start production on the 70,000 tonne/yr woodfree (CWF) paper PM in June 2013.
The changes in the import duty level have been been a source of continual controversy among Russian market players over the past few years. Certain paper producers have argued that the government should promote domestic production of coated publication paper grades through increased import duties. Representatives of the publishing industry, however, say that the government's decision to decline a permanent 5% import tariff is due to a strong lobby by the large Russian pulp and paper player Ilim Group.
In 2011, Russia imported around 420,000 tonnes of coated publication paper, according to RISI estimates.
