(HELSINKI) - European Commission President Jose Manuel Barroso on Tuesday threw his weight behind Finland's demand for Russia to abolish raw timber export duties, deeming Moscow's actions "not acceptable."

The Nordic country is one of the world's largest paper and wood product manufacturers and sources much of its raw material from its much larger neighbour.

But Finnish imports have declined after Russia in 2006 started gradually ratcheting up export duties.

Moscow most recently lifted the tariff in April to 25 percent from 20 percent previously, or a minimum of 15 euros (25 dollars) per cubic metre.

"My answer is clear, we will stand by Finland in this issue and we believe the current situation is not acceptable and it is not compatible with the agreement we have with Russia," Barroso told reporters in Helsinki after meeting Finnish Prime Minister Matti Vanhanen.

Barroso added that the European Union and its Trade Commissioner Peter Mandelson were trying to work constructively with Russia to find a solution.

The EU and Russia have been in negotiations but have so far failed to strike a deal. The commission has previously said the timber duties could hamper Russia's negotiations to join the World Trade Organization.

Finnish paper companies such as Stora Enso and UPM-Kymmene have closed mills to improve profitability and have warned they would have to make further job cuts if the duty issue is not resolved soon.

"I am really afraid that in the beginning of next year the trade of round timber (from Russia) will end. We don't have much more time," Vanhanen said.

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