30 Oct 2023 10:29

Russia's Market Council to factor export duty into margin on electricity exports to China - source

MOSCOW. Oct 30 (Interfax) - The supervisory board of Russia's Market Council approved changes to the regulation on the energy market on October 27 that call for factoring the export duty into the profitability of electricity exports to China, a source familiar with the decision told Interfax.

The changes are supposed to go into effect on November 1, 2023.

The Russian government approved a resolution earlier to impose export duties from October 1, 2023 to the end of 2024 on a broad range of goods in the amount of 4-7% when the U.S. dollar's exchange rate is 80 rubles or more; the duty increases as the ruble weakens.

The sole operator for Russian electricity exports and imports is state power company Inter RAO .

Inter RAO said earlier that it had reached agreements with China and Mongolia to include the duty in the price of exported electricity, but this did not eliminate the need to make the changes to the regulation on the energy market.

"Our amendment is needed now so that this price increase can reach us as the exporter, so that we pay [the duty] into Russia's budget. Payment will be from the Chinese partners. Now Inter RAO will earn a margin of 5% plus what China pays," company spokesperson Alexandra Panina said, commenting on the need for the changes.

Nothing will change for electricity consumers in Russia's Far East, she said.