Sanctions-hit Russia has approved changes to the formula for calculating its grain export taxes to support shipment in the July-June marketing season, the agriculture ministry said on Friday.
Russian farmers are expected to harvest a massive wheat crop this summer, bringing a record exportable surplus in the 23 season. However, shipments are complicated by high export tax, a strong rouble and sanctions-inflated costs for freight and insurance.
The new base price for calculating the wheat export tax is set at 15,000 roubles ($283.68 at the current rate) per tonne, the ministry said.
It was previously in U.S. dollars at $200 a tonne. The Agriculture Ministry used the base price as well as price indicators reported by traders to determine the level of tax on a weekly basis. It is set at $146.1 per tonne for June 29 to July 5.
The Sovecon consultancy estimates that the new base price reduces the tax by about $60 a tonne when the price for Russian wheat is at $380 a tonne and one U.S. dollar is equal to 52 roubles.
Russia is the world’s largest wheat exporter and aims to remain so, Russian President Vladimir Putin said this week. It continues to supply its traditional markets in the Middle East and Africa despite disruption to Black Sea supply chains.
The United Nations has said the world faces a hunger crisis because of reduced supply from Ukraine, the Black Sea ports of which have been blocked since Moscow sent thousands of troops into the country on Feb. 24.
Moscow blames Western sanctions for problems on the global food market.
Russia also decided to change the base price for calculation of barley and maize export taxes: 13,875 roubles a tonne will replace the current $185 a tonne, the ministry said.
For sunflower oil, the base price for tax calculation will be 82,500 roubles per tonne rather than the current $1,000 a tonne.
