Russia has formally abolished most coal export duties linked to the rouble's exchange rate against t

Russia has officially abolished most coal export duties linked to the rouble's exchange rate against the dollar, according to a decree published on the Russian government's website. The move marks a remarkable policy shift. Since October 1 last year, the Russian government has implemented flexible export tariffs on a variety of goods, and the tariff rate is linked to the ruble exchange rate for 15 months, which is scheduled to last until the end of 2024. Depending on the exchange rate of the ruble, the tax rate is generally between 4% and 7%. 0% tariff when the exchange rate of the ruble against the United States dollar during the monitoring period is below 80 rubles; The tariff is 4% for prices between 80 and 85 rubles, 4.5% for prices between 85 and 90 rubles, 5.5% for prices between 90 and 95 rubles, and 7% or more for prices above 95 rubles. The ruble is currently trading at about 91 rubles to the dollar.

According to the latest decree, export tariffs on thermal coal, coking coal and anthracite coal have been officially abolished. If coal prices remain stable, the measure could boost the profits of coal and steel producers Mechel: K10 and Raspadskaya: GJ by 6% and 12%, respectively. At the same time, Russian coal exports surged in 2010, reaching 220 million tons. Much of this is exported to China, and the elimination of export tariffs will undoubtedly keep Russian coal competitive in the Chinese market.