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Russia to defer excise payments on liquid steel and iron ore

The Russian government has decided to postpone the payment of excise taxes on liquid steel and the mineral extraction tax for iron ore until December 1, 2025. This move follows similar support measures previously applied to the coal sector.

Russia to defer excise payments on liquid steel and iron ore

The deferral is part of a broader set of measures aimed at supporting the metallurgical industry. Discussions have also included the potential removal of the excise tax for electric steelmaking enterprises in 2026, as well as exemptions for new facilities with investments exceeding 50 billion rubles during their active investment phase and the subsequent three years.

Currently, the excise tax rate on liquid steel stands at 2.7% of the average monthly export price for steel slabs at Black Sea ports. If the ruble price of a slab falls below 30,000 rubles per ton, no excise tax is applied. Industry analysts note that excise payments have become heavier than profit taxes in some cases, affecting competitiveness, while the current 30,000 ruble threshold is considered too low.

The tax deferral is expected to provide a modest boost of around 3–4% to annual EBITDA for steel producers. In line with the government’s budget adjustments, revenue from the excise on liquid steel is forecast to drop by nearly 26% this year, reaching roughly 47 billion rubles.

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