Inter RAO introduced restrictions on electricity supplies to China

Single operator of electricity export-import in Russia “Inter RAO“has introduced partial restrictions on electricity supplies to China, a company representative told Vedomosti.

He clarified that negotiations with China have not yet been completed.

Wherein “Inter RAO“continues to supply electricity to Mongolia, as the authorities agreed to increase the price, he added.

September 28, Inter RAO representative Alexandra Panina reportedthat the company is ready to limit or completely stop supplies outside the EAEU from October 1 – to China, Mongolia, Azerbaijan and South Ossetia. According to her, the company sent contractors a proposal to raise electricity prices by 7% due to export duties introduced by the Russian government.

Panina noted that the profitability of supplies abroad is below 7%, to China – 5%, and to Mongolia even less, so the company “cannot afford to pay a 7% duty.” According to her, Inter RAO can stop supplies to China without consequences for itself, despite the take-or-pay condition specified in the contract: zero supply volumes are specified for the current year.

September 21 government reported, which introduces flexible export duties on a wide range of goods linked to the ruble exchange rate. They began to operate on October 1 and will remain in place until the end of 2024. The duty on supplies outside the EAEU will be 4–7% of the customs value of the goods with an average exchange rate of more than 80 rubles/$. Oil, gas, grain, timber and a number of other goods will not be subject to duties. Panina said that the company plans to appeal to the government with a request to make an exception for electricity.