Russia dramatically reduces the tax on grain exports
Russia
Published Jul 3, 2022
Tridge summary
Sanctions-hit Russia has significantly reduced its grain export taxes after changing the formula used for shipments in the July-June farming season, Moscow's agriculture ministry said. Russian farmers are expected to harvest a huge wheat crop this summer, leading to a record export surplus in the 2022/23 season.
Original content
However, shipping is complicated by high export taxes, a strong ruble, and increased shipping and insurance costs due to sanctions. The ministry said the new base price for wheat export tax calculation will be set at 15,000 rubles ($283.68 at current exchange rates). Previously, this was done in US dollars at $200 per ton. The Ministry of Agriculture determined the amount of the tax on a weekly basis based on the base price and the price indicators provided by the traders. The export tax on wheat itself is set at 4,600 rubles ($85.8 at current exchange rates) per ton for July 6-12, compared with $146.1 per ton for June 29-July 5, the ministry said in a separate note. Russia is the world's largest exporter of wheat and wants to remain so, Russian President Vladimir Putin said this week. Despite the disruption of Black Sea supply chains, Moscow continues to supply its traditional Middle Eastern and African markets. The United Nations says the world is facing a famine crisis due to ...
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