Russia lowers exchange rate-linked export duty on fertilizer to 7% maximum

MOSCOW. Dec 12 (Interfax) - The Russian government has lowered the exchange rate-linked export duty on mineral fertilizer that is in effect until the end of 2024, capping the rate at 7%, and the government posted the corresponding resolution on the portal of legal acts on Wednesday.

The resolution enters into force one day after publication.

The decision applies to exporting all types of fertilizer. The duty remains 7% until the end of the year, previously reaching 10% when the exchange rate exceeded 80 rubles/$1.

"The goal of the decision is to reduce the financial burden on the sector and support mineral fertilizer producers," according to the statement.

Russia introduced flexible export duties on a broad range of goods, including mineral fertilizer, on October 1, 2023, and they are valid until the end of 2024. For mineral fertilizer, the duty was 10% if the U.S. dollar's exchange rate was higher than 80 rubles/$1 and 7% if it was lower than this figure. For other goods, the duty ranges from 4% to 7% when the dollar's exchange rate is 80 rubles/$1 or higher.

The exchange rate-linked export duty is at the highest level of 7% in December, with the amount of the duty for the month calculated based on the average dollar exchange rate in November.