The Russian Federation to extend the tariff quota for scrap exports until June 2023

Russia plans to extend the tariff quota for the export of scrap and waste of ferrous metals outside the territory of the country to states that are not members of the Eurasian Economic Union (EAEU) until June 30, 2023. This is reported by Interfax with the reference to data from the Ministry of Industry and Trade.

The size of the quota can be reduced to 600 thousand tons from 1.35 million tons, which is valid until the end of 2022. The rate of export duty is planned to remain at the level of 5%, but not less than €5/t. Exports within the EAEU will remain non-quota-free.

“The project was developed for the purpose of unconditional supply of strategic raw materials to domestic enterprises of the steel industry in conditions of unprecedented sanctions pressure from unfriendly countries,” the document says.

As GMK Center reported earlier, from 2022 Russia increased the duty for the export of ferrous metal scrap from €70 to €100/t. The duty rate was set at 5%, but not less than €100/t. The initiator of the tariff increase was the Ministry of Industry and Trade of the Russian Federation.

The first tariff quota for the export of scrap was introduced for the period from June 1 to July 31, 2022.

In August of 2022, the Russian Federation extended the tariff quota of 1.35 million tons for scrap exports until the end of 2022. When exporting steel in the volume of the quota, the duty was 5%, but not less than €100/t, above the quota – 5%, but not less than €290/t.

In 2021, Russia exported approx 3.22 million tons scrap metal, and the previously established duty of €100/t has already collapsed the export of scrap metal. In January 2022, Russian scrap producers exported only 3,000 tons of raw materials, which is 230 times less than in 2021.