Medvedev: EU carbon tax may slash demand for Russian oil, coal

MOSCOW, Aug 26 (PRIME) -- Consumption of Russian oil and coal may significantly decrease due to the E.U.’s carbon tax, and losses of Russian exporters could reach billions of euros, Dmitry Medvedev, deputy chairman of the Security Council, said at a meeting on Wednesday.

“Because of such cross-border regulation, consumption of both Russian oil and Russian coal can be significantly reduced. According to the Academy of Sciences, the financial losses of domestic exporters will amount to billions of euros,” he said, adding that it was difficult yet to calculate the exact figure.

The E.U. carbon tax may sharply raise the competitiveness of goods from European countries compared with other states, including Russia, Medvedev said.

He called the tax “hidden protectionism” under guise of good intentions and said it will curb access of Russian goods to the European market.

Medvedev urged to consider support of the most vulnerable enterprises and sectors if the tax is introduced. He named ferrous and non-ferrous metals, chemical industry and energy among the sector that could suffer the most.

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