Russia to take wheat export tax decision by mid-May

Russia, one of the world’s major wheat exporters, will take a decision on removing a tax on wheat exports by mid-May, ahead of schedule, Deputy Prime Minister Arkady Dvorkovich told reporters on Wednesday.

The government initially imposed the tax from Feb. 1 until June 30 to cool domestic prices and food inflation after the rouble tumbled late last year.

“We are aiming to ensure that the duty ceases to work in its current form in the very near future as there is no need to keep it under current market conditions,” Dvorkovich said.

“The duty on grain in its current state may be cancelled even earlier than July 1,” Dvorkovich said.

Later, he said the duty level would be changed to “close to zero or to zero”.

Dvorkovich said he had asked Russia’s Agriculture Ministry to submit proposals so that the government could take a decision on its removal by mid-May, but that the government would prepare a mechanism which would allow it to impose export duties quickly if needed in future.

Russia is not considering for now removing fully its ban on most Western food imports, set in August for one year, but it is considering easing measures for selective countries and products, he also said.