7 Oct 2022 09:55

Russian export duty on coal might not be triggered in 2023 with current price at $130-$140/t - Belousov

MOSCOW. Oct 7 (Interfax) - Russia's export duty on coal will probably not generate any revenue for the budget in 2023 at current contract prices for Russian coal on the world market, First Deputy Prime Minister Andrei Belousov said at the Coal Industry - New Realities forum in Kemerovo on Friday.

"Why is this export duty not at all painful for the coal industry - it's structured very simply. There is a certain threshold price, below which no export duty is charged," Belousov said.

"Today we have an average selling price of about $130-$140 [per tonne] for Russian coal on world markets in the East. We agreed with coal companies that the cut-off price will be $150, meaning that it is higher than the contract price we currently have on the market. This means that if the price rises, the situation improves further, and the price climbs above $150, then part of excess income from the profit above the price of $150 will be collected for the budget, if it's lower then zero," Belousov said.

"We are probably unlikely to collect anything from export duties on the coal industry next year," he added, remarking that this issue is being discussed with the Finance Ministry.