duties make it possible to withdraw 30-40% of exporters’ income from the devaluation of the ruble – Kommersant

First Deputy Prime Minister of the Russian Federation Andrei Belousov said that the mechanism of flexible export duties makes it possible to withdraw from exporters from 30% to 40% of the additional income received from the weakening of the ruble. He emphasized that the main purpose of introducing duties is to protect the domestic market.

“From somewhere around 73-75 rubles. per dollar to 100, this is approximately a 30% devaluation. In our country, exchange rate changes are transferred to domestic prices with approximately an elasticity of 10%, that is, of these 30% – 3% will be transferred to domestic prices at a certain speed,” explained Mr. Belousov at the “Made in Russia 2023” forum (quoted from TASS).

According to him, “in order to slow down this process,” “and preferably to eliminate it altogether,” export duties were introduced. Low-margin types of export activities, noted Andrey Belousov, were excluded from the resolution on export duties, taking into account the costs associated with increasing the key rate and other factors.

Export duties introduced from October 1, 2023 to December 31, 2024 and apply to supplies outside the EAEU. Duties are set at 4–7% at an exchange rate of 80–95 rubles. per dollar, at an exchange rate of less than 80 rubles. per dollar the rates are zeroed. The mechanism does not affect, among other things, wheat, barley, corn, sunflower oil, meat, and key export items of dairy products.

About the impact of export duties on the food market – in the material “Kommersant” “Corrosive duties”.

Lusine Balasyan