Dmitry Medvedev's government announced today that from July 1, for a period of six months, Russia is introducing regional quotas limiting the export of ferrous scrap outside the borders of the Eurasian Economic Union.
The statement of the Russian Cabinet of Ministers indicates that from January 1, 2020, ferrous scrap metal will be exported exclusively through an exchange tender. The government will prepare a bill in support of this proposal by September 1.
On behalf of Russian Deputy Prime Minister Dmitry Kozak, the Ministry of Economy, the Ministry of Trade and Industry, as well as the Federal Antimonopoly Service must introduce quotas into the draft law by June 25.
The document provides for the introduction of quotas for the period from 01.07.2019 to 31.12.2019.They will be distributed among exporters in proportion to the tonnage shipped by them in the previous 2016-2018. from all regions, with a correction factor applied for each region.
According to the government, the lowest coefficients of 0.6 and 0.5 will be applied to the regions of the Far East and South of Russia, respectively, experiencing the most acute need for ferrous scrap.
Some sparsely populated Far Eastern regions will receive higher rates. So, for example, Sakhalin will receive a coefficient of 1.2, and the most distant eastern regions of Kamchatka and Chukotka, as well as the western Siberian region of Krasnoyarsk, will receive a coefficient of 1.
Most of the northwestern regions of Russia, including St. Petersburg, will receive a coefficient of 0.8, and a coefficient of 1 will be set for the Kaliningrad and Murmansk regions. For Arkhangelsk, a coefficient of 1.5 is planned, and in all other Russian territories - 0 , 75.
