Russia announces new fert export tariffs

Moscow-The Russian government on March 18 approved export duties on fertilizers until April 2009 to reduce the cost of the nutrients for domestic grain producers. Nitrogen fertilizer exports will be subject to a tariff of 8.5 percent of the customs value and potash fertilizers will have a 5 percent tariff, the government said. The government also said it would raise the export tariff on fertilizers containing nitrogen, phosphorus, and potash blends in packages not exceeding 10 kg (22 lb) to 8.5 percent, up from the current 5 percent. The tariffs will become effective one month after the official publication of the order, and will remain in effect until April 30, 2009, the government said in a statement. Agriculture Minister Alexei Gordeyev was quoted as saying that 90 percent of mineral fertilizers produced in Russia are exported and only 10 percent used domestically. Gordevev said in a separate statement that the government intended to use 7-10 billion rubles (US$297.5-$425 million) generated by the new tariffs to buy additional fertilizer for Russian farmers.