Russia may gradually switch state export taxes on grains and sunflower seeds from dollars to rubles, the Interfax news agency reported on Thursday, citing a ministry source involved in the discussion.
Russia, the world’s largest exporter of wheat and one of the main suppliers of sunflower seeds, faces a series of US and European sanctions as a result of the decision to invade Ukraine.
Russia’s grain sales abroad have been limited as the new marketing season begins on July 1, against a backdrop of a high export tax, a strong ruble, freight problems and a lack of sales. term caused by the sanctions.
“Government ministries are discussing the modernization of the tax mechanism for cereals and sunflower seeds to preserve the profitability and attractiveness of Russian farmers’ investments,” the source said, according to Interfax.
“It is about applying a certain discount to the export duty, taking into account the risks of decreasing the profitability of production. This will not affect domestic prices, but will support exports,” added the source, who was not identified.
Two industry sources told Reuters that traders had been asking the government to change the export tax mechanism for wheat, set by the Ministry of Agriculture at $142 per tonne for the period between 22-28 June. June, but there was no agreement between the representatives.