Russia Changes Export Formula as Ruble Soars

Russia, the world’s largest wheat exporter, will change its formula for calculating grain and sunflower oil export taxes to support shipments amid a strong ruble currency, Reuters reported. Russia has continued exporting grains but faced problems with logistics and payments caused by Western sanctions. The strong ruble is another issue, hampering exports along with a high export tax. The currency is trading at a seven-year high to the U.S. dollar due to capital controls. “Recently we have seen a trend towards a gradual increase in global grain and oilseed prices, and a simultaneous strengthening of the Russian rouble,” Vladimir Ilyichev, deputy economy minister, said in a statement. The change in the formulas will reduce the impact of the dynamic of the ruble-dollar exchange rate on the size of the export taxes and support exports “while ensuring the stability of our domestic prices,” the ministry said.

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