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Export duty on fertilizers will increase from 7% to 10% at dollar rate above 80 rubles

Fees are calculated based on the dollar exchange rate for the month ending on the 25th of the previous calendar month

MOSCOW, September 21. /TASS/. Export duties on fertilizers will increase from the current 7% to 10% if the dollar exchange rate is above 80 rubles, according to the Cabinet resolution.

According to the document, from October 1, 2023 to December 31, 2024, the duty rate will be 7% if the average dollar exchange rate is less than 80 rubles and 10% if the exchange rate is above 80 rubles. Moreover, the minimum rate in both cases will be 1,100 rubles ($11.4) per ton for nitrogen fertilizers, 2,100 rubles ($21.8) per ton for phosphorus and 1,800 rubles ($18.7) per ton for potash.

Fees are calculated based on the dollar exchange rate for the month ending on the 25th of the previous calendar month.

Earlier, the Russian government announced that from October 1, flexible export duties will be applied to a wide range of goods and these duties will be tied to the ruble exchange rate. The measure is temporary and aimed at protecting the domestic market. The duty will range from 4% to 7% depending on the exchange rate of the national currency. At 80 rubles per dollar and below, the duty will be zero.

From January 1, Russia introduced export duties on mineral fertilizers in the amount of 23.5% for a year, which were in effect if the price of fertilizers exceeded $450 per ton. Deliveries below this price were not subject to duty. However, the Finance Ministry said in June that since the Russian budget received only about 5% of the export duty payments planned for this year, the government was studying the possibility of replacing this mechanism. As a result, from September 1, Russia began to apply export duties on fertilizers in the amount of 7% of the customs value, with the establishment of a minimum duty rate depending on the type of fertilizer.

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