Foreign media, December 16: Russia's Ministry of Agriculture issued a circular to reduce export tariffs (ruble-denominated) on wheat by 15%, barley by 2% and corn by 3% in the coming week.

For the period December 18-24, 2024, Russia's benchmark price for wheat and blended wheat is $236.5 per tonne and the export tariff is 4,136.5 rubles per tonne. By comparison, the benchmark price for the December 11-17 period was $233.8 per ton with an export tariff of 4,871.5 rubles per ton.

The benchmark price for corn was set at $229.0 per ton with an export tariff of 4,393.3 rubles per ton; the benchmark price for the previous week was set at $218.0 with an export tariff of 4,513.2 rubles per ton.

The benchmark price for barley was set at $197.8 per ton with an export tariff of 2,185.3 rubles per ton; the previous week's benchmark price was $187.5 with an export tariff of 2,229.1 rubles per ton.

On June 21, 2024, the Russian Minister of Agriculture stated that the adjusted starting prices for grain tariffs would take effect from July 1, 2024.On May 31, 2024, the Russian Ministry of Agriculture increased the price base for calculating grain tariffs by 1,000 rubles per tonne for wheat from 17,000 rubles per tonne to 18,000 rubles per tonne, and from 15,000 rubles per tonne to 18,000 rubles per tonne for corn and barley. tariff starting prices for corn and barley were raised from RUB 15,875 to RUB 16,875 per ton.

On May 29, 2023, the Russian government increased the tariff starting prices for grains by RUB 2,000/tonne for both. From June 1, 2023, the base price for calculating the tariff on wheat was increased by RUB 17,000/tonne from RUB 15,000, and the export base for corn and barley was also increased by RUB 2,000 to RUB 15,875/tonne.

On June 30, 2022, Russia announced that effective July 6, 2022, it would change its tariffs from U.S. dollars to ruble-denominated. The formula is calculated by subtracting the base price of wheat from the base price of 15,000 rubles per ton and multiplying it by 70%. The base price of wheat in the formula is the base price calculated by the Moscow Exchange based on FOB contract prices reported by exporters. The export base price for barley and corn has also been changed from $185 per ton to RUB13,875, and the formula for tax calculation is to subtract RUB13,875 from the base price and multiply it by 70%.

Russia's Ministry of Agriculture from June 2, 2021 onwards to implement the formula of taxation.

On Monday, the Russian ruble was at 104.16 rubles to the dollar, compared with 100.13 a week ago.The ruble exchange rate, which had fallen to an all-time low of 115 on Nov. 27, is still at its lowest point since the Russia-Ukraine conflict of 2022, although it has bounced back after intervention by Russia's central bank as the U.S. ramps up sanctions against Russia.

Note: 1 US dollar is equal to 104.16 rubles