Posted on 22 Sep 2023
The Russian Ministry of Finance and the Ministry of Economy are contemplating implementing export duties on nearly all types of goods from 1 October, lasting until the end of 2024, according to Kommersant. A source from a steel mill confirmed to Kallanish these discussions are taking place.
The ad valorem rate will be linked to the rouble exchange rate versus the dollar, with rates ranging from 4% to 7%. When the exchange rate ranges between RUB 80-85 roubles, the duty will stand at 4%; for RUB 85-90, it is 4.5%; for RUB 90-95, it is 5.5%; and for rates exceeding RUB 95, it reaches 7%. Linking the export duty to the exchange rate is aimed to compensate for some of the negative effects due to lower costs in dollar terms amid a weak rouble.
Key exceptions will include oil, petroleum products, gas, timber, scrap, grain, and specific mechanical engineering products under HS chapters 84-96.
The industries most impacted by these potential duties will be metallurgy, coal, and fertiliser producers, significantly affecting Russia's non-oil and gas raw material exports, according to media reports. Some experts anticipate that the introduction of these duties could erode up to a third of export margins, and may have a negative impact on companies' investment programmes.
Source:Kallanish
