Bloomberg News

Russia’s Tax on Grain Shipments May Be Linked to World Prices

October 27, 2011

Oct. 27 (Bloomberg) -- Russia’s potential grain export tax may be linked to world prices, Andrei Slepnyov, deputy economy minister, said.

The duty may be determined by the difference between world and domestic grain prices, he told journalists today in Moscow.

Russia will introduce the duty if grain exports reach 24 million to 25 million metric tons, Vladimir Putin, prime minister, said on Oct. 25. The measure is aimed at taming inflation and securing domestic bread reserves.

Russia’s grain harvest dropped 37 percent to 60.9 million tons last year because of the country’s worst drought in at least half a century. The government imposed a ban on exports last August through July 1 to secure sufficient supplies.

This year’s harvest may exceed 95 million tons in bunker weight, according to Agriculture Ministry data based on reaping of 96 percent of sown areas. Bunker weight is measured before grain is dried and cleaned.

--Editors: John Deane, Alastair Reed

To contact the reporter on this story: Marina Sysoyeva in Moscow msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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