icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
26 Jun, 2021 06:42

Russia to introduce export duties on metals to protect domestic market from price spikes

Russia to introduce export duties on metals to protect domestic market from price spikes

Russia may adopt temporary export tariffs on sales of ferrous and non-ferrous (copper, nickel, aluminum) metals and metal products from August 1 to December 31.

The duties will not affect exports to member states of the Eurasian Economic Union, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia.

According to the Minister of Economic Development Maxim Reshetnikov, an export duty is determined by an increase of prices for metals globally, and in Russia as well.

“Over the five months of this year, export prices for ferrous metals increased by 30% in annual terms, for non-ferrous metals – by 50%. The rise in world prices entails a rise in prices for metal products in the domestic market, therefore, the construction of facilities is becoming more expensive,” the minister said. 

Also on rt.com China cools off soaring industrial metal prices amid post-pandemic demand surge

Reshetnikov emphasized that metal prices are not expected to decline by the end of the year. Thus, he suggested an introduction of export duties for the next five months on “key products” of ferrous and non-ferrous metallurgy. According to him, the base tax rate will be 15%, and in addition, specific duties will be established, which will be calculated as the minimum rate per ton.

Such a minimum duty for steel pellets can be $54 per ton, for hot-rolled flat products and rebar – $115, for cold-rolled products – $133, for stainless steel and ferroalloys – $150.

Reshetnikov also said that for non-ferrous metals duty rates could amount to $1,126 per ton of copper, as well as $2,321 for nickel and $254 for aluminum.

Also on rt.com Red metal running out? Copper may hit $20,000 amid global shortage – Bank of America

The minister said duty rates should be adopted by the government no later than June 30.

“The introduction of the tariffs is not a punishment for steel workers. This is part of the range of protective measures for the internal market. We must protect domestic consumers from what is happening now on the world markets,” said First Deputy Prime Minister Andrey Belousov.

For more stories on economy & finance visit RT's business section