Russia's Industry and Trade Ministry develops procedure to subsidize discounts on rare-earth metal products

MOSCOW. Feb 9 (Interfax) - Russia's Industry and Trade Ministry has developed a resolution on the procedure for providing subsidies to producers of rare and rare-earth metal (RM and REM) products to offset lost revenue associated with discounts provided to customers.

The Industry and Trade Ministry explains that the goal of the resolution is to foster sustainable demand for domestic RM and REM products by reducing the price burden on consumers. The introduction of a compensation mechanism will improve the competitiveness of domestic products, encourage their use in the process chains of Russian enterprises, and facilitate the formation of long-term contractual relationships between producers and consumers.

The draft resolution indicates that the subsidy will apply to loparite concentrate, ilmenite concentrate of at least 62%, ferromolybdenum, neodymium oxide, and neodecanoate. The maximum discount for lost revenue is 35%.

The Industry and Trade Ministry has developed the document as part of the Development of the Rare and Rare Earth Metals Industry federal project. As previously reported, Russia plans to allocate a total of 3.85 billion rubles in subsidies to domestic producers of rare earth metals between 2026 and 2028 to offset lost revenues associated with discounts for buyers.