The aim of this decision is to increase the revenue share of the budget. Russia lost between €9 million and €22 million per day in coal export revenues from August 2023 to January 2024.
The currency duty on coal exports was first applied in October 2023, but at the end of December it was decided that from 1 January 2024 the duties would not be applied to coal exports, since China, where a significant share of Russian coal is exported, introduced its own import duties. According to the new flexible export duties the rate will vary from 4 to 7 per cent depending on the ruble exchange rate. If the ruble falls below 80 rubles per dollar, the duty is cancelled.
In addition to the currency duty, the Finance Ministry also plans to raise the mineral extraction tax rate for coal.
The Russian coal industry is facing serious problems in 2023 due to the loss of the European market and sanctions. Coal production in 2023 fell by 1.1 per cent and coal exports fell by 3.9 per cent.
Exports were shifted more towards Asia, primarily China and India. Turkey is another buyer of Russian coal. In the structure of Turkish coal imports, the share of Russian coal rose sharply in 2022 to 46 per cent, and in 2023 it already reached 58 per cent.
In the context of falling global coal prices, these duties and taxes may weaken the competitiveness of Russian coal on the international market.
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