The Russian economy ministry has proposed a 15pc export tax on steel, aluminum, copper, and other base metals to safeguard its domestic interests starting Aug 1.
According to media reports today, the country will impose this tax until the end of 2021 while it prepares a permanent system. The government indicated the country will also benefit from the current supercycle in commodity prices through this move.
Andrei Belousov, Russia’s first deputy prime minister said that the transfer of global prices has had a harsh impact on the domestic market. The 15pc tax is therefore being implemented to curb this trend and protect local steel and aluminum for defense purposes. Maxim Reshetnikov, economy minister for Russia estimated around RUB114bn ($1.6bn) from steel and its products in taxes and another RUB50bn in nonferrous export taxation. A table explaining the tax is below.
|Metal/grade||Export Tax||Min. duty|
|Fe HRC/ rebar||15%||$115/mt|
|Fe CRC/ wirerod||15%||$133/mt|
|Stainless steel/ Fe alloys||15%||$150/mt|