Prime Minister Vladimir Putin has ordered the world's largest nickel producer Norilsk Nickel and the Russian government to agree an efficient nickel and copper export duty mechanism.

"We have an idea for working out a flexible formula like we did with oil - the tax burden fluctuates in line with international prices. But we should examine the formula itself. It must be correct and efficient," Putin told a meeting on the development of the city of Norilsk and Norilsk Nickel on Tuesday.

"If a formula is not worked out in the nearest future... I will have to agree with my colleagues' proposals, which shareholders may not like."

Putin said that the government had supported Norilsk Nickel by abolishing nickel and copper export duties when world prices for the metals slumped.

"The market has stabilized, world prices are at a high enough level to guarantee profitable operation for the company. This is why the issue of adjusting duties is back on the agenda," Putin said.

NORILSK, Russia, August 31 (RIA Novosti)