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Russia: No Relaxation of Export Restrictions

Mintec Global
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In Russia, measures on selling oilseeds to foreign markets may be relaxed if domestic processing capacities are provided with the required raw materials. This is stated in a letter from the Ministry of Agriculture in response to the call of the Russian Grain Union.

Unicaps Sunflower seeds

“Measures to limit the export of oilseeds were taken to ensure food security of the Russian Federation at low utilisation of processing capacity, and are aimed at promoting processing in the country and subsequent export of finished products Increase employment in the agro-industrial complex and increase state budget revenues, – reads a letter from the Ministry of Agriculture, signed by the Director of the Department of Regulation of Agricultural Markets Maxim Titov. “When self-sufficiency in raw materials and oilseed processing products is achieved, these measures can be revised.”

Earlier, the industry association proposed eliminating all existing tariffs on oilseeds and replacing them with a duty-free export quota of 6 million tons (broken down by type of oilseed), which would apply from March 1 to Sept. 1, 2023. The Union is confident that this will provide the oil and fat industry with a favourable regime for purchasing raw materials during the mass supply of the crop and allow the formation of resources to export sunflower oil.
Russia has an export duty of 20% on soybeans (but not less than $100 per ton), extending until August 31, 2024. The export duty on a sunflower is 50%, but not less than $320 per ton – that will make it valid until August 31, 2023. By the end of February, the shipment of rapeseed from all regions of the Russian Federation except the Transbaikal Territory is also banned.

The Ministry of Agriculture assured that a series of measures to support agricultural producers in the face of an unfavourable economic situation in foreign markets could prevent a sharp drop in prices at home.