Russian govt has no plans to extend export duties on fertilizers, will zero them out as of 2025 - Finance Ministry

YEREVAN. Oct 1 (Interfax) - The Russian government currently has no plans to extend the validity of the export duties on fertilizers, and the government intends to zero them out as of January 1, 2025, Deputy Finance Minister Alexey Sazanov told Interfax.

"The duties [on fertilizers] are generally to be cancelled as of January 1, 2025. We have now increased the mineral extraction tax (MET), as you know, beginning from next year," he said.

"There are currently no plans to extend it [the duty]," Sazanov added.

The government has implemented the current export duties on fertilizers in two stages. A combined export duty with an ad valorem rate of 7% and specific, namely, minimum rates of 1,100, 1,800, and 2,100 rubles per tonne of nitrogen, potash, and phosphorus/complex fertilizers, respectively, has been valid since September 1, 2023.

The government has set export duties on a wide range of goods linked to the ruble exchange rate, including fertilizers, since October 1, 2023. When the exchange rate exceeds $80 rubles/$1, a surcharge of 3 percentage points has been levied on fertilizers in addition to the already existing ad valorem rate, namely the duty has increased to 10%.

Both types of duties are valid until December 31, 2024. The Finance Ministry previously said that the "exchange rate" export duty would be cancelled as of next year simultaneously with the rise in the MET for fertilizer producers. However, Interfax's sources in the industry have expressed concerns that the government could retain the combined duty at a rate of 7%.