Russian Ministries to Examine Rescinding Excise Duty on Steel
Strategic Research Institute
Published on :
08 Jun, 2022, 8:21 am
Interfax Russia has reported that Russia's Industry & Trade Ministry, jointly with the Finance Ministry, is to analyze in detail by the end of June the level of financial stability of domestic metals companies in order to decide on additional support measures, including rescinding the excise tax on steel. Russia’s Industry & Trade Minister Mr Denis Manturov told “We have agreed that we would conduct detailed monitoring by the end of the month, including on the movement of the enterprises' own funds, in order to understand how urgent rescinding the excise tax is in order to take a prompt decision."
Industry & Trade Ministry does not yet see the need to take an urgent decision on rescinding the excise tax on steel. Mr Manturov said “I can confirm that the financial results for metals enterprises were not bad in January-April 2022 compared to 2021; therefore, it is probably not urgently necessary to take hasty decisions [on rescinding the excise tax on steel]. However, as I confirm, we have already started discussions with the Finance Ministry, because we see that the trend has been negative for the past week-and-a-half, primarily because of the ruble exchange rate. Let us see how everything turns out, but the main factor once again today is the ruble exchange rate.”
Incidentally, Russian President Mr Vladimir Putin has said that a number of industries, including ferrous metals, are signaling risks of a substantial drop in medium-term production. He said “We have already held a number of industry meetings, as you know, where, together with the representatives of business and the relevant agencies; we have outlined the priority tasks and our further actions, and have agreed on specific measures to support enterprises, companies, and employees in the current conditions.”
Russia’s Industry Ministry does not expect demand for steel to drop more than 9% in 2022. Commenting on the forecast of the World Steel Association on the steel consumption decline in Russia by 20% to 35.1 million tonne in 2022, Russian Federation's Minister of Trade and Industry Mr Denis Manturov had said last month that the Ministry did not rule out revising the demand downward but the drop would not be a double-digit one. He told "I would elect not to confirm such expert estimates. We do not see it. Furthermore, the domestic demand remains, on the assumption of implementation of National Projects, development of industry sectors at large and the construction industry in particular. Probably some revision is possible, including downward. However, this is definitely not a double-digit figure.”