The government of the Russian Federation posted the draft decree by the Ministry of Agriculture on zeroing of the wheat export duties from September 15, at the common web-portal of legal information disclosure.
According to the explanatory note, to date the reporting duties do not actually have any regulatory impact. At the same time, the customs duties have already led to the fact that to date, grain exporters have almost stopped contracting for long-term supplies (for more than 2 months), since in terms of price fixing at forward contracts there are some additional risks related to possible changes of RUR/USD exchange rates, and fluctuations of the global market prices.
In order to change the bearish trend on the domestic grain market and strengthen the export rates at the expense of reducing the risks of long-term contracting, it is necessary to establish the zero customs duty on wheat exports until July 1, 2018, the explanatory note stressed. (APK-Inform/Business World Magazine)
