The government of Russia has officially made public the decision to zero down the export duties on wheat. The web-site of the government posted the corresponding resolution #966 dated September 26.
According to the signed resolution, the zero rate for the export duty on grain has been set until July 1, 2018.
The previous government resolution #1032 dated September 29, 2015 set the export duty rate on grain at 10 RUR/t.
“This rate does not exert a regulating influence on the domestic market. The increase in the grain harvest reduced domestic prices on grain (by 17-27% depending on its grade). Keeping the customs duty at the previous level inhibits the signing of long-term contracts on grain supplies, which reduces purchases on the domestic market during the massive influx of grain from the new harvest and further lowers market prices”, the government press-service specified.
The resolution is subject to the legal relations arising on or after September 23, 2016 and until July 1, 2018. (APK-Inform/Business World Magazine)
