Interfax: PhosAgro asks to revise the parameters of the export duty

The Russian chemical holding PhosAgro sent a letter to Russian President Vladimir Putin with a request to adjust the parameters of the export duty imposed on January 1. According to the source “Interfax”, PhosAgro asks to reduce the cut-off price for cheaper nitrogen and potash fertilizers. Now a duty of 23.5% is charged on prices above $450 per ton, it is set for all types of fertilizers.

According to Interfax, the parameters were approved without taking into account the profitability of the production of various types of fertilizers. In this regard, according to the source, it will be impossible to collect the planned amount of the fee in 2023. In January, revenue to the budget from the duty is expected to be at the level of 20% of the plan, and by the end of the year – 22 billion rubles. At the same time, the government expects budget revenues at the level of 120 billion rubles.

“The duty levy will have a minimal impact on the profitability of potash and nitrogen fertilizer production, which is 40–60%, while the profitability of phosphorus and complex fertilizer production will decrease to a level of about 10%, which will lead to lower investment in the future,” reports source letter content.

According to the source, Vladimir Putin instructed the government to consider this appeal. A representative of the Ministry of Economic Development told Interfax that the ministry was aware of the company’s letter and planned to discuss this issue.

The export duty rate of 23.5% with a cut-off price of $450 per ton is set by the government from January 1 to December 31, 2023. At a cost below the cut-off price, the duty rate remains zero. Deputy Finance Minister Aleksey Sazanov explained that the government would withdraw part of the additional revenue in the form of duties, in connection with which the operating and investment activities of companies would not be affected.

Lusine Balasyan