Russian Economy Minister Maxim Reshetnikov said during a government meeting that Russia intends to impose an export tax on wheat as part of measures aimed at stabilizing high domestic food prices, which were criticized by President Vladimir Putin.
The minister stated that the tax on exports will be 25 euros (30.4 dollars) per ton between February 15 and June 30. This tax will be applied to the grain export quota of 17.5 million tons during the same period.
The Sofikon Agricultural Consultants said in a note that the tax may reduce Russian wheat exports for the period 2020-2021 between two and three million tons to between 37.8 and 38.8 million tons. Russian wheat export prices are likely to increase in December and January between 2 and 4 percent.
Putin criticized the rise in food prices last week. Its rise coincided with a decline in the income of Russian citizens by 4.8 percent in the third quarter of the year and the largest decline in twenty years in the previous quarter due to the Covid-19 crisis.
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