Russia wants export tariffs on fertilizer

Urgently needed money

Media: Russian government wants to declare fertilizer exports

According to a media report, against the background of the global food crisis, the Russian government is planning to increase the cost of exporting fertilizers through tariffs. Russia wants to use this to raise much-needed money.

The export duty on fertilizers should secure additional income of 105 billion rubles or the equivalent of 1.75 billion euros per year for the Russian budget, wrote the daily newspaper Kommersant on Wednesday. Kremlin chief Vladimir Putin recently lamented the Western sanctions that hampered the export of Russian fertilizers and food and thus provoked a hunger crisis in poor countries.

The proposal comes from the Ministry of Finance and is to be discussed at a government meeting this week, chaired by Deputy Prime Minister Andrei Belousov. “The decision has been made in practice, now the specific tariff is being negotiated,” the newspaper reported, citing government circles.

The proposal is explosive. With reference to the global food crisis, Russia had pushed for a relaxation of sanctions against the sector. In return for the Grains Agreement, which provides for the unblocking of Ukrainian seaports for food exports, Moscow negotiated a mitigation of sanctions that hampered the export of Russian fertilizers and food. However, the Kremlin was recently dissatisfied with the implementation of the agreement.

(SDA)