Russia ties temporary export duty to exchange rate
The government of Russia is introducing temporary flexible export duties tied to the rouble exchange rate, starting from 1 October.
The duty will range from 4-7% depending on the Russian currency's exchange rate, according to Thursday's announcement. It will be zero at 80 roubles/dollar or lower, 4% if between 80 and 85 roubles; 4.5% if between 85 and 90 roubles; 5.5% if between 90 and 95 roubles; and 7% if over 95 roubles.
This regulation is intended to maintain a rational balance between export and domestic consumption, according to government press statement. The decision aims to safeguard the domestic market from unjustified price hikes.
The average exchange rate will be calculated from the 26th day of the previous month to the 25th day of the month preceding the application of the duty based on the central bank rates. It will be published by the Ministry of Economic Development on is official website.
These export duty rates will be applied to goods exported from Russia outside the Eurasian Economic Union's customs territory, considering certain exemptions and conditions.
Iron and steel goods under code 72, with the exception to code 7205 29 000 0, which covers "other powders made from porous and spheroidal cast iron and porous and spheroidal iron," are the subject of new export duty.
On Thursday, the rouble/dollar exchange rate was 96.6172. The 30-day average exchange rate was 95.952 according to xe.com. If the duty were to be calculated today, it would amount to 7%, Kallanish estimates.
These flexible export duties will remain in effect until the end of 2024.
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