Higher tax to replace Russia's metal export duty

Significance

Officials are trying to correct high domestic prices which they see as unjustified, and to claw back what they regard as excessive profits earned by metals companies.

Impacts

• Export duties could exert upward pressure on global prices of steel, nickel and aluminium.
• Exports to the Eurasian Economic Union are exempt, so the government will need a failsafe system to prevent re-exports to third countries.
• The export duties will reduce the corporate income tax earned by metal-producing regions.