The Russian government is considering export duties on most goods

The Russian Ministry of Finance and the Ministry of Economy are considering the possibility of introducing export duties on almost all types of goods from October 1 until the end of 2024. A source at the steel mill confirmed to Kallanish Commodities that these discussions are taking place.

The ad valorem rate will be tied to the ruble exchange rate against the dollar and will vary from 4% to 7%. At an exchange rate of 80-85 rubles, the duty will be 4%; for 85-90 rub. – 4.5%; for 90-95 rub. – 5.5%; and for bets exceeding 95 rubles, it reaches 7%. Linking the export duty to the exchange rate is intended to compensate for some of the negative consequences of lower costs in dollar terms against the backdrop of a weak ruble.

Key exceptions will include oil, petroleum products, gas, timber, scrap, grain and special engineering products in accordance with HS chapters 84-96.

According to media reports, the industries that will be most affected by these potential tariffs will be metals, coal and fertilizer producers, which will significantly affect Russian exports of non-oil and gas raw materials. Some experts predict that the introduction of these duties could reduce export profitability by up to a third and have a negative impact on companies' investment programs.