Russia removes export duties on ferrous steel products in some regions

The Russian government has temporarily excluded certain types of products produced in the Donetsk and Luhansk People's Republics from the scope of exchange rate export duties. The relevant decree was signed and, effective until 31 December 2024, export customs duties will not be imposed on 900 thousand tonnes of iron or non-alloy steel semi-finished products, 16 thousand tonnes of ferrosilicon and 200 thousand tonnes of coke products.

Also, from 1 September 2024 to 31 December 2024, a zero export customs duty rate will be applied to 80 thousand tonnes of pig iron and 184 thousand tonnes of wire rod produced in the DNR and LNR.

This measure is aimed at increasing the competitiveness of suppliers of products from the new regions, maintaining the level of profitability of companies and providing them with the opportunity to receive additional export income.

As a reminder, flexible export duties were introduced on 1 October 2023 and will remain in force until the end of 2024. The customs duty ranges from 4% to 7% of the customs value depending on the exchange rate of the national currency and is zero at exchange rates of 80 rubles per dollar and below.