Russian aluminum exports skyrocketed prior to introduction of export duties

Inside Rusal. Photo: Business Vector

Total exports of Russian aluminum  amounted to US$7.5 billion a month before the introduction of duties by the national government.

In July 2021, aluminum exports from Russia soared 7.7 times compared to June, to US$7.5 billion. A month before the introduction of export duties, Russian companies exported more aluminum abroad than for the entire 2020.

Most of exports (US$7.39 billion) accounted for unprocessed aluminum.

For comparison: in 2020, exports of aluminum and products from it in Russia amounted to about US$5.5 billion and US$ 5.8 billion in 2019.

On August 1, 2021, the government introduced duties on the exports of Russian aluminum and some other metals to abroad. The authorities have been forced to use such measure in response to a sharp increase in the cost of metals, including for state construction, since the end of 2020. The decision on duties  was adopted on June 25. The duties consist of a base rate (15%) and a specific component (in dollars per tonne), the value of which is calculated depending on the type of product.

In July of the current year, the Netherlands became the largest export destination for Russian aluminum - US$915 million, followed by Greece - US$551 million; large volumes were also exported to Turkey, South Korea and Japan.

By: Eugen Gerden