Russia has lifted duties linked to the rouble-dollar exchange rate on most coal exports, according to a decree published on the government’s website.
The export duties — which were introduced on a number of goods in October and had been expected to last until the end of 2024 — were scrapped for exports of thermal and coking coals, as well as anthracite, the decree showed.
Analysts, cited by Kommersant daily, said the decision to scrap the duties may help Russian coal producers save between $1.1 billion and $1.5 billion per year.
BCS brokerage said the measure could increase profit at coal and steel producer Mechel (MTLR.MM) and Raspadskaya coal mine by 6% and 12% respectively, provided coal prices remain stable.
Russia imposed the duty as a way to raise revenue at a time of increased military spending and as producers increased exports thanks to the weakness of the rouble.
The duty amounts to between 4% and 7% depending on the rouble rate. If the rouble reaches 80 to the dollar, the duty is automatically nullified. The rouble currently trades at around 91 per $1. Last year’s Russian coal exports totalled 220 million metric tons, around half of which was sold to China.