russia removes export tariffs on fertilizer

Russia to abolish fertiliser export tariffs
Wed Jan 28, 2009 12:41pm GMT


MOSCOW, Jan 28 (Reuters) - Russia will remove export tariffs on certain mineral fertilisers introduced last year to support domestic fertiliser producers hit by the world financial crisis, the government said in a statement on Wednesday.

It was not immediately clear when the tariffs would be removed. Normally it occurs one month after publication of a government order in the government gazette, which usually appears within days of the original announcement.

The government last year imposed an 8.5 percent export tariff on nitrogen fertilisers and fertilisers containing nitrogen, phosphorus and potassium in any combination of the three, in packages not exceeding 10 kg (22 lb).

It also applied a 5 percent tariff to exports of potassium fertilisers.

The tariffs were set from April 19 to 30, 2009 in a move that was expected at the time to raise at least $300 million to buy fertilisers for local farmers.

But the government said domestic fertiliser sales fell 36 percent year-on-year in November 2008. Exports of fertilisers also fell 16.3 percent in October-November from the same period a year earlier.

This forced producers to halt some of their production facilities, the government said in the statement.

"In the current global situation, the dropping of export tariffs should not be viewed as a measure of regulation of external trade, but as a form of direct financial support from the state to the fertiliser sector," the government said.

Major Russian producers of mineral fertilisers are Uralkali (URKAq.L), Silvinit (SILV.RTS), Acron (AKRNq.L) and Ural Chem. (Reporting by Aleksandras Budrys; editing by Sue Thomas)