Russia increased wood export duties from €10 (£8.03) to €15 per cubic metre earlier this month and plans to increase the price to €50 per cubic metre by the beginning of next year, in a bid to promote the development of its own wood processing industry.

Russia is a key source of wood for Finnish pulp and paper makers, who already operate with slim profit margins.

The European Commission said it "regretted" the decision and the issue could be a sticking point for Russia's planned entry into the World Trade Organisation.

Jussi Pesonen, the head of the federation and chief executive of top magazine paper maker UPM-Kymmene, said: "With the multiplicative effects, the wood tariffs when put in force, could cause the loss of about 25,000 jobs. It is a very significant and difficult matter."