Russia may return wheat export duty if US dollar soars

ANOSINO, Moscow Region/SOCHI, Oct 3 (PRIME) -- The government may reintroduce a wheat export duty, if the U.S. dollar jumps or if Russia harvests little grain, Agriculture Minister Alexander Tkachyov said on October 2 at a seminar hosted by the United Russia ruling party.

“We have deliberately cancelled the duty as the market has stabilized and does not need our regulation. But if something extraordinary happens, like the U.S. dollar exchange rate soaring to 80 rubles or even 100 (rubles), we will reintroduce the measure. Or we may have a terribly bad harvest, and collect 40 million tonnes of grain instead of 116 million. Then we will have to stop exports to keep the grain in Russia,” Tkachyov said.

Russia imposed the wheat export duty on July 1, 2015, which was measured as 50% of the price minus 6,500 rubles per tonne, but at least 10 rubles per tonne. On September 27, Prime Minister Dmitry Medvedev signed a ruling to abolish the wheat export duty from September 23 until July 1, 2018.

Tkachyov said that introduction of a fertilizer export duty was discussed, but it is impossible to implement as Russia is a member of the World Trade Organization, which prohibits any export duties.

Deputy Prime Minister Arkady Dvorkovich said on October 1 that the government does not plan to return the wheat export duty.

“The decision was (to zero the duty) for two years, but we have no plans to return to that. Exporters have asked us to set the deadline. I don’t know why they did it, I offered an indefinite abolishment of the duty, but they insisted on a certain terms. I think it may be zeroed indefinitely, but that does not mean that it will be reintroduced in two years. We have no definite plans to reintroduce the export duty,” he said.

(63.3960 rubles – U.S. $1)

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