Russia approves formula-based sunflower oil export tax

Russia approves formula-based sunflower oil export tax

The Russian government has approved a formula-based export tax system for sunflower oil and a higher export tax for sunflower seeds, as part of a drive to combat domestic food price inflation.

Russia has imposed several export taxes for grains and sunseeds, among other measures, since December in its battle to tame rising food prices in the coronavirus pandemic.

Starting from September, the formula-based export tax on sunflower oil is planned for one year, according to an order signed by Prime Minister Mikhail Mishustin.

The government set it at 70 per cent of the difference between US$1,000 and an indicative price per tonne that will be calculated by the Agriculture Ministry. The ministry will reduce that indicative price by US$50 per tonne each month.

Russia’s export duty for sunflower seeds will rise to 50 per cent, but will not be less than $320/tonne, for the period between July 1, 2021 and Aug. 31, 2022, the government said.

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