SOCHI, September 19 (RIA Novosti) - Russia could delay a 80% increase in timber export duties until 2011 or even reduce the tariffs, the economics minister, Elvira Nabiullina, said on Saturday.

Russia, which has about a quarter of the world's forests, planned another major increase in its export duties starting from 2010 in a bid to encourage the domestic processing industry. The EU has objected to tariff hikes, which have also been high on the agenda of Russia's WTO entry talks.

Speaking at an international investment forum in Sochi, Nabiullina said the tariffs could be either increased as planned, reduced or preserved intact next year. She said "the decision is expected to be made in September-October," adding the last option was the most likely.

Nabiullina said the issue dominated her meeting with Finnish Trade and Development Minister Paavo Vayrynen earlier on Saturday.

"This is one of the most acute issues in our relations as Finland imports much timber from Russia," she said.

Timber tariff hikes in Russia have affected Finland's wood-processing industry, forcing companies to close production lines and cut jobs. The Russian government delayed the move for a year last December, heeding Finland's request.

Nabiullina said Russian regional timber producers have requested the tariffs to be retained at the current level or even cut citing the ongoing economic crisis affecting sales.

The minister said unprocessed timber exports have declined, and a number of projects to invest in new processing companies have been delayed due to financial problems.

Russia has been trying to reduce its dependence on oil and natural gas revenues by promoting non-energy industries.