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The Russian government has set grain export taxes for the upcoming July 6 -12 period and for the full July period for oil and sunmeal and has switched the currency to rubles while also significantly cutting the tax compared to the previous week, according to an official document released late Friday, July 1.
The tax has been calculated according to a newly adopted formula published just ahead of the updated tax.
The Russian government has published the new wheat tax covering the July 6-12 period at 4,600 rubles per tonne, which is around $85 per tonne according to the official central bank exchange rate.
That would equate to a drop of $60.60 per tonne compared to the previous level.
The figure is again based on the seven-day average index published on the Moscow Exchange (MOEX), which now stands at $404.40 per tonne, $4.40 per tonne up from last week.
The calculation of the index is based on the level of trades reported.
The formula for the wheat tariff calculation has changed, as the basis threshold that used to be set at $200 per tonne has been changed to RUB15,000 per tonne for wheat and from $185 per tonne to RUB13,875 per tonne for corn and barley.
The average exchange rate for the five days prior to the release of the new rate has also been put into the formula to convert the underlying index, which remains in US dollars.
The barley tax was set at RUB3,307.70 per tonne, an equivalent of $61.50 per tonne, which means a drop of $56 per tonne from the previous level and was based on an index that stands at $352.50 per tonne – unchanged from last week.
Finally, the government has put the corn export tax at RUB2,168.80 per tonne, $40.33 per tonne equivalent according to the official exchange rate, and a fall of $48.36 per tonne compared to the previous tax.
The index on which the calculation was based increased $10.20 per tonne from last week’s level to $322 per tonne.
The formulas for sunmeal and oil exports were also changed, with the new basis and the exchange rate also implemented, and the date of publication was changed from 15 days of the month to 25 days of the month.
For the formula for sunseed oil, the basis price was changed to RUB82,500 per tonne from an initial $1,000 per tonne, and the exchange rate was also put into the formula.
For the sunmeal tax, the basis was changed from $185 per tonne to RUB13,875 per tonne.
That was followed by confirmation that the taxes set for July earlier on June 2 will be changed.
The sunoil tax was set at RUB8,408.70 per tonne, or $156.39 per tonne equivalent, and a fall of around $403.71 per tonne compared to the one published on June 3 for the July period, with the same basis at $1,800.20 per tonne.
The sunmeal tax was set at RUB1,783.10 per tonne, or around $33 per tonne, a fall of around $56.20 per tonne from the previous level set on June 3 for the July loading period.
The index on which the tax calculation was based was $312.80 per tonne.
The move comes to help exporters be competitive on the international markets, as Russia is expected to have record grain production in the 2022-2023 marketing year.
To date, the trade has been slow amid Western sanctions, payments, and fleet availability issues following Russia’s invasion of neighboring Ukraine.