December 15, 2003

Russian PM Kasyanov Signs Grain Export Duty Decree

Russian Prime Minister Mikhail Kasyanov has signed a decree approving the introduction of a EUR25 per metric ton export duty on rye and wheat, according to the government press service.

The export duty will come into force one month after its publication in the official Russian press and will be effective until May 1, 2004.

Russia's Finance Minister Alexey Kudrin said earlier the decision was being taken in order to stabilize prices on the domestic market.

Kudrin said bread prices in Russia had increased since the beginning of this year by 24% and the trend was continuing.

The reason for the increase in prices was excessive exports, which may reach six million tons in the current marketing season.

Kudrin said the export duty was not prohibitive and left some stimulus for the exporters. The government had reserved the right to scrap the export tax if the situation on the domestic market did not justify the tax, he said.