Russia's exchange rate-linked export duty to drop to 4.5% in July from 5.5% in June - Economic Development Ministry

MOSCOW. June 26 (Interfax) - The exchange rate-linked export duty on a broad range of goods that Russia introduced last October will decrease to 4.5% for the period from July 1 to 31 from 5.5% in the period from June 1 to 30, the Economic Development Ministry said in a press release.

The export duty for mineral fertilizers, which are subject to a different scale, will remain at 10% from July 1 to 31, like in June, but at least 1,100 rubles, 1,800 rubles or 2,100 rubles per tonne depending on the type of fertilizer.

The Russian government approved a resolution last September to impose the export duty linked to the ruble's exchange rate against the U.S. dollar from October 1, 2023 until the end of 2024. The duty is 4% at an exchange rate of 80-85 rubles/$1, 4.5% at a rate of 85-90 rubles/$1, 5.5% at 90-95 rubles/$1 and 7% when the exchange rates is over 95 rubles/$1.

For mineral fertilizers, the duty is 10% but at least 1,100 rubles, 1,800 rubles or 2,100 rubles per tonne depending on the type of fertilizer at an exchange rate of more than 80 rubles/$1, and 7% but at least 1,100 rubles, 1,800 rubles or 2,100 rubles per tonne depending on the type of fertilizer at exchange rates below this figure.

The Economic Development Ministry calculates the export duty based on the arithmetic average exchange rate over the period of a month, from the 26th to the 25th of the next month.

The largest payers of the duty are mining companies that export ferrous, nonferrous and precious metals, coal (the export duty on coal was temporarily lifted from May 1 to August 31) and fertilizers.

The exchange rate-linked duty is supposed to be scrapped as of 2025, when the profit tax will be raised by 5 percentage points as part of a package of tax changes that the government has submitted to the State Duma.