Russia fears re-export of sunflower through EAEU member countries

The introduction by Russia of an export duty on sunflower was aimed at preserving the volume of sunflower raw materials for the domestic processing industry inside the country. Since sunflower oil is also in no less demand abroad, Russian market regulators reasonably decided that it would be better for importers to export the finished product than sunflower seeds. At the same time, the corresponding processing capacities will be loaded in the country, jobs and additional surplus value will be preserved, reports KazakhZerno.kz. However, the duties do not work for the EAEU member states. Each of these countries has the right to buy sunflower from Russia duty-free. In such a situation, the problem of re-export arises, when the EAEU members buy Russian sunflower not for their own needs, but for resale to third countries, but already under the guise of their own raw materials. After a further increase in duties on sunflower seeds, market participants will only increase their ...