Russia may introduce an export duty on sunflower oil from 1 September, Economic Development Minister Maxim Reshetnikov said.

He explained that the damping mechanism will be formed on the principle of grain damping with a cut-off price and a duty equal to 70% of the excess of the price difference.

According to Mikhail Maltsev, the executive director of the Oil and Fats Union, the mechanism is being considered when the oil price reaches $1,000 per ton, the export duty will be 70% of the amount by which the base price is exceeded.

On July 1, a restrictive export duty will be imposed on sunflower seeds, Reshetnikov added.

The export duty on rapeseed and sunflower was raised until 30 June to 30% of the customs value of exported products. The lower limit was set at 165 euros per 1 tonne. Duty on sunflower may be increased up to 50% from July 1.

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Author: Ksenia Gustova