Russia: Wheat export tax cut to level previously proposed by government

Russian Prime Minister Dmitry Medvedev has signed an order to cut a wheat export tax from October 1 to a level previously proposed by the government, a statement on the government's website showed on September 30.

Russian wheat exports have been constrained by the tax, which has prevented exporters from fully benefitting from the weaker rouble and a large grain crop.

"The accepted decision will allow to support Russia's exportable grain surplus, to secure the balance of the domestic agricultural market and the required profitability level of grain producers," the government said in the statement on www.government.ru.

The new duty formula is set at 50 percent of the customs price minus 6,500 roubles ($99) per ton but not less than 10 roubles per ton, it added.

These changes in the formula were earlier proposed by the government and were widely expected by market players to be approved.

The previous tax formula was set at 50 percent of the customs price minus 5,500 roubles per ton but not less than 50 roubles per ton.

The government statement said nothing about prices for the state restocking programme. The Agriculture Ministry has previously proposed raising them.

02 October, 2015