The Government decided to impose export duties on metal products
June 24. – Chairman of the Government of the Russian Federation Mikhail Mishustin held a meeting to discuss the Strategy for the development of Additive Technologies until 2030. Also, there was made a decision to temporarily impose export duties on metal products. First Deputy Prime Minister of the Russian Federation Andrey Belousov, Minister of Industry and Trade of the Russian Federation Denis Manturov, Minister of Economic Development of the Russian Federation Maksim Reshetnikov and Minister of Finance of the Russian Federation Anton Siluanov made reports on the regulation of metallurgical products export.
Mikhail Mishustin stressed that the demand for additive products is steadily growing around the world. This is a very large and promising market. New technologies help to significantly reduce the time from product development to the finished products release. Reduce energy consumption during production. This industry is able to offer non-standard solutions and increase production volumes in a short time," stressed the head of government.
According to him, in 2020, the supply of additive equipment and components for export by Russian companies has grown more than four times. Sales in the domestic market also increased and amounted to more than 800 million rubles.
In order to increase the Russian manufacturers competitiveness which work with 3D technologies, according to Mikhail Mishustin, it is necessary to create a regulatory framework for their introduction into production, stimulate import substitution of foreign developments with domestic products and actively promote Russian technologies to foreign markets.
The main topic of the Government meeting was the imposition of export duties on metal products.
Maksim Reshetnikov said that over the five months of this year, export prices for ferrous metals increased by 30% in annual terms, and for non-ferrous metals-by 50%. Taking into account the fact that metallurgy is an export-oriented industry, the growth of world prices leads to an increase in the cost of metal products on the domestic market, which affects the construction cost.
"According to the results of joint work with the Ministry of Industry and Trade, the Ministry of Finance, and other departments, it is proposed to introduce temporary export duties on key ferrous and non-ferrous metallurgy goods from August 1 to December 31, 2021 (five months). During this period it is necessary to develop a permanent mechanism that will allow to accumulate part of the profit from this extremely favorable conjuncture – if the situation continues in the next years – already in the budget," - said the Minister of Economic Development of the Russian Federation.
The duty will be levied on a wide range of products: rolled products, fittings, blanks, wire, ingots, as well as copper, nickel, aluminum of a low degree of conversion. These Measures apply to exports only outside the Eurasian Economic Union. Domestic products will continue be exported duty – free to the EAEU member states, as this is provided by the agreement.
The head of the Ministry of Industry and Trade of Russia Denis Manturov stressed that this position is dictated by the prices increase for metallurgical products since the autumn of last year.
"There is growth in China, the United States, and Europe. Our prices have really increased from 70 to 80%, somewhere even higher. This really affects the metal-intensive consumer sectors and other sectors of the economy," said Denis Manturov.
He noted that a number of factories are city-forming, moreover, enterprises sent their own resources to environmental programs, to technological modernization projects. Therefore, the proposal to introduce an export duty on the export of all Russian metal products is the most respective measure for the industry and, most importantly, it is temporary, with a validity period until the end of December this year.
"We consider it necessary to send the proceeds to support metal - intensive industries, primarily the performers of the state defense order (here we should not allow the failure of deadlines and price increases), and a number of other industries that depend on the supply of metallurgical products," said the head of the Ministry of Industry and Trade of Russia.
First Deputy Prime Minister of the Russian Federation Andrey Belousov stressed that support for non-resource non-energy exports remains the priority for Russia, but in the current situation, when world metal prices effect on the domestic market, the introduction of duties becomes a necessary measure.
"The duties introduction is not a punishment for metallurgists, as Denis Manturov said that metallurgists bear a great social burden, environmental burden, and so on. This is part of the of protective measures complex of the domestic market. We must protect our domestic consumers from what is happening now on the world markets," concluded Andrey Belousov.
Original is on the website: Minpromtorg RF