Export duty on metals possible if price compromise not reached - minister
MOSCOW. Feb 5 (Interfax) - Russian Industry and Trade Minister Denis Manturov said an export duty might be imposed on metals if a compromise on prices with the metallurgical industry cannot be reached.
"If we can't reach a compromise in the coming weeks, then we might have to act as the government did with grain [and impose export duties]," Manturov said on Wednesday.
"This applies to other sectors as well - if we can't reach a compromise, we'll resort to such non-traditional measures, measures that are unfortunately, unpopular, and later, oddly enough, we'll simply be supporting those sectors that have suffered from the state budget," Manturov told reporters, when asked whether the government was thinking of imposing metal export duties.
The minister said that by compromise he means short-term contracts between metal producers and consumers "for a specific period of time at specific prices, so that there is no dramatic growth of [prices for] the final product, because otherwise this will lead to the acceleration of inflation and a simultaneous drop in consumer demand - nobody is going to buy automobiles at 30% above the price."
He said the growth of prices for metal products affects virtually all sectors. "When we talk about a dramatic increase in the price of metallurgical products for consumer sectors - and metallurgical products are used by virtually everyone without exception, just in different amounts and different selection - I want to say that we have already held a whole set of such meetings, where our objective is to find a compromise solution that will ensure both the stable development and operation of metallurgical plants and timely delivery at a fairly compromise price to consumers in the near future. The same was done for mineral fertilizers," Manturov said.
He said this refers to short-term contracts. "We now need to resolve issues that we are facing in the next few months. We need to adjust the situation every month. And it's very difficult for me, like any expert, and professional and director of a business to forecast what will happen in a month or let alone in six months. Therefore, we need to promptly respond and provide assistance to our businesses in such an inter-sectoral aspect. I think that this work will bear fruit, have an impact, and as a result we will provide adequate help to our businesses," Manturov said.
