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Russian government temporarily cancels export duties on some types of coal

According to the Russian Federal State Statistics Service, almost half of coal companies in Russia failed to make a profit in the period January-February 2024. To prevent this situation, the government temporarily canceled export taxes on some types of coal.

Russian government temporarily cancels export duties on some types of coal

This figure is almost double that of the same period in 2022, at 45.9%. Compared to last year, the share of loss-making companies increased by 7.3 percentage points.

The profit of coal companies was 62.2% lower than last year, at 475 million dollars.

Production for the January-March 2024 period increased by 1.5% and reached 108 million tons. In particular, the production of all types of hard coal increased by 3.2%, reaching 83.7 million tons. Anthracite production decreased by 8.4% to 6 million tons. Production of other types of hard coal decreased by 0.7% to 49.4 million tons. Coke increased by 11.1% to 28.3 million tons.

Experts point to the decline in global coal prices and sanctions that have diverted exports to Asia, where coal has to be sold at a discount, as factors causing coal companies' profits to decline. High tariffs applied for the transportation and transfer of cargo also increased the costs of coal companies.

Considering all these factors, the Russian government decided to remove export duties on thermal coal and anthracite from May 1 to August 31, 2024. The basic tax will vary between 4% and 7% depending on the exchange rate of the national currency.

On exchange rates of 80 rubles per dollar and below, the tax will be zero, on exchange rates between 80 and 85 rubles per dollar, the tax is 4%, between 85 and 90 rubles, 4.5%, between 90 and 95 rubles, 5.5%, and on exchange rates above 95 rubles, it will be 7%.

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