Russia has set a new export duty of 7% for fertilizer products, with certain limited exceptions, from Sept. 1 through the end of 2024, according to an Interfax report, citing a government decree published late on Aug. 31.
Earlier in the week, it was reported that Russia was considering a reduction in the proposed new export duty.The first draft resolution providing for a fertilizer export duty of 8%, prepared by Russia’s Finance Ministry, was published in early August (GM Aug. 4, p. 34).
The ministry subsequently excluded from the draft the water-soluble phosphate fertilizers diammonium hydrogen phosphate and ammonium dihydrogen phosphate, which are expensive to produce.
Russian fertilizer group PJSC PhosAgro, the country’s biggest producer of phosphate fertilizers, has been seeking a differentiation in the export duty depending on the complexity and number of processing stages of fertilizer production, according to the report. It is unclear if PhosAgro’s proposals were taken into account in the new duty reduction.
Russia had export duties in place at a flat rate of 23.5% on all types of mineral fertilizer export sales priced above $450/mt FOB since Jan. 1, 2023 (GM Dec. 9, 2022). For fertilizers priced up to a maximum of $450/mt FOB, the rate of duty was zero. The duties had been set to remain in place through Dec. 31, 2023.