The Government of Russia officially made public the decision to zero down the export duties on wheat. The web-site of the Government posted the corresponding resolution #966 dd. September 26, 2016.
According to the signed resolution, the zero rate for the export duty on grain has been set until July 1, 2018.
As a reminder, the previous Government Resolution #1032 dd. 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 percent 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", specified the government press-service.
The Resolution is subject to the legal relations arising on or after September 23, 2016, and until July 1, 2018.
