Russian Prime Minister Mr
Mikhail Mishustin has signed a decree that will introduce export
duties on ferrous and non-ferrous metals starting 1 August 2021 for
sales outside the Eurasian Economic Union. The duties on 340
products, ranging from USD 54 to USD 2,321, will be in effect
through the end of December 2021. The duties, which are intended to
control inflation of metal prices domestically and cool domestic
metal prices are expected to raise approximately RUB 160 billion
rubles over that five-month period. The taxes are said to compensate
consumers for rapid rises in commodity prices of between 60% and
100% over the last 12 months.
The duty’s base rate will be 15%, with the following specific rates
for each product
Iron ore concentrate – USD 54 per tonne
Flat hot-rolled steel and rebar – USD 115 per tonne
Cold-rolled mill products and wire – USD 133 per tonne
Stainless steel and ferroalloys –USD 150 per tonne
Aluminium – USD 254 per tonne
Copper – USD 1,226 per tonne
Nickel – USD 2,321 per tonne
The duties will not be applied to Russia’s aluminium exports to
countries within the Eurasian Economic Union ie Armenia, Belarus,
Kazakhstan and Kyrgyzstan. All Russian steel products for export
outside of the EAEU with a bill of lading dated August 1 or later
would be subject to the tax
Russian metal companies denounced the measure as discriminatory and
purely fiscal. Nornickel President & Chairman Mr Vladimir Potanin
told journalists “The government's incentive is clear, social
justice in the form of larger contributions to the public budget
from highly profitable companies, but the tools should have been
more fine tuned." |