Manturov: authorities to consider exemption from 'exchange rate' duties for sectors where these create barriers to entering foreign markets

MOSCOW. Nov 21 (Interfax) - The Russian government continues to analyze industries in terms of how they are impacted by the export duty introduced from October 1, 2023 and tied to the dollar exchange rate, and is ready to grant exceptions from the duty if necessary, Deputy Prime Minister and head of the Industry and Trade Ministry Denis Manturov told reporters.

"We are actually continuing this work with our colleagues from the economic bloc [to revise the industries subject to the "exchange rate" duty]. As we make an inventory of those industries and industrial enterprises where it creates certain additional costs for entering foreign markets, I think that by finding such situations, we will definitely come to a compromise with our colleagues," he said.

Manturov did not list the industries which might be granted an exception from the "exchange rate" duty. When asked whether, for example, this concerned fertilizer producers, which earlier asked to be partially exempt from the duty, the deputy prime minister said: "Other industries are being considered".

The day prior, Deputy Industry and Trade Minister Oleg Bocharov said that the ministry plans to go to the government with a proposal not to charge export duties on the pulp and paper industry. "This is the only sustainable market. The capacity that the pulp and paper sector gives in exports cannot be provided by any other sub-sector of the timber industry. To burden it with seven percent right now is not only to inflict a ten billion dollar loss on it, it means giving the market to Brazil, Northern Canada, through deep water ports to the Southeast, to China," the official said.

The export duty tied to the ruble and applying to a wide range of products was imposed by the government on Oct 1, 2023 and will be in effect through the end of 2024. The duty rate at a exchange rate of 80-85 rubles/$1 totals 4%, at 85-90 rubles/$1 - 4.5%, at 90-95 rubles/$1 - 5.5% and at 95 rubles/$1 and above - 7%.