Area
Russian Federation
Commodity Group
Oilseeds, oils and meals
Commodity
Sunflower seed, rapeseed, sunflower oil, soybeans
Date
01/12/2020
Policy Category
Trade
Policy Instrument
Export policies/market regulation
Description
Driven by concerns about shrinking domestic supplies and high domestic prices for staple foods, in December 2020, the Government raised the export duties for sunflower seed and rapeseed (for a period of six months), introduced a tax on soybean exports (for a five-month period), and brokered edible oil price agreements between crushers and retailers. In March 2021, following fresh rises in prices, the Government also introduced a tax on sunflower oil shipments, in addition to raising the level and extending the duties on seed exports. Furthermore, in April, the Government started subsidizing production and sales of sunflower oil by companies participating in the referenced price stabilization programmes.
Notes
RUSSIAN FEDERATION export policy: In December, driven by concerns about rising domestic prices for staple foods, the Government revised the export duties for several oilcrops and derived products. The export duties on sunflowerseed and rapeseed were hoisted from 6.5 percent to 30 percent but not less than EUR 165 per tonne (USD 199). The higher duties came into effect on 9 January 2021 and will remain in place until end-June 2021. Expected to reduce shipments and lower local prices of the two commodities, the measures could also favour exports of the crops derived products. Reportedly, the Government also considered introducing a 15 percent export duty on sunflowerseed oil. Meanwhile, the Government brokered price agreements between crushers and retailers, which capped sunflower oil retail prices at RUB 110 per kg (USD 1.50) until March 2021. Toward end-December, the Government also decided to institute a temporary tax of 30 percent (but not less than EUR 165 per tonne) on soybean exports to secure domestic supplies amid rising global prices. The soybean duty will come into effect on 1 February 2021 and remain in place for five months. Observers expected the measure to affect producers in the countrys far eastern regions, which rely on selling soybeans to neighbouring China.
