Russian nickel, copper export duty formula almost ready

The Russian Finance Ministry is close to completing a revision of nickel and copper export duties tying them to market prices, Finance Minister Alexei Kudrin said on Wednesday.

The Russian Finance Ministry is close to completing a revision of nickel and copper export duties tying them to market prices, Finance Minister Alexei Kudrin said on Wednesday.

"The decision is almost ready," Kudrin said.

On Tuesday, Prime Minister Vladimir Putin told metals giant Norilsk Nickel and the government to speed up work on developing an export duty formula.

In July, the Finance Ministry proposed a zero-level duty if nickel prices fell below $12,000 per ton, rising to 30 percent if prices rise above $20,000 per ton.

The ministry said that the system, approved by a commission chaired by First Deputy Prime Minister Viktor Zubkov, could be introduced in 2011. In August, the government ordered the commission to speed up coordination of duties on plain nickel and copper cathodes.

Nickel export duty now stands at five percent of customs value. There are no duties on copper exports. The Finance Ministry has suggested a 10 percent copper export duty should be introduced in 2011.

Copper and nickel are currently traded at $7,300 and $20,600 per ton respectively on the London Metals Exchange.

The Finance Ministry expects the new export duty formula to bring in revenues of 6.5 billion rubles in 2011, 6.6 billion rubles in 2012 and 5.4 billion rubles in 2013.

The 10 percent copper export duty will bring in 8.9 billion rubles in 2011, 7.4 billion rubles in 2012 and 6.5 billion rubles in 2013.

MOSCOW, September 1 (RIA Novosti)