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Russia Plans to Suspend Wheat, Barley and Corn Export Duties Until Year-End

Russia Plans to Suspend Wheat, Barley and Corn Export Duties Until Year-End

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Russia plans to set export duties on wheat, barley and corn at zero until the end of 2026. The initiative put forward by Russia’s Ministry of Economic Development and Ministry of Agriculture was supported by the Subcommittee on Customs and Tariff Regulation and Non-Tariff Regulation and Protective Measures in Foreign Trade under the Government Commission on Economic Development and Integration.

According to the official statement, the proposal involves temporarily suspending the mechanism of variable export duties applied to grain products. Under the proposal, the export duty rate for wheat, barley and corn would be set at zero until 31 December 2026.

The statement said the initiative was supported in consideration of the need to restructure the logistics system. The proposal to temporarily suspend the existing variable duty mechanism for grain exports was submitted by the Ministry of Economic Development and the Ministry of Agriculture.

Russia introduced its variable grain export duty mechanism in 2021. Under the system, export duty rates for wheat, barley and corn are calculated periodically based on international market indicators and export contract price data. The applicable duty varies according to the difference between a predetermined base price and the relevant indicative price.

The measure covers export duties on wheat, barley and corn. According to the statement, a separate arrangement is planned for variable export duties on sunflower oil and sunflower meal. Under this arrangement, the duties on these products would not be increased above their August 2026 levels. The August rates were stated as 7,748 rubles per tonne for sunflower oil and 312 rubles per tonne for sunflower meal.

The Ministry of Economic Development stated that the proposed zero duty rate for grain exports is planned to remain in effect until 31 December 2026. However, the measure has not yet been formalized through a government decree. According to the ministry’s statement, a draft government decree is expected to be submitted to the Russian government for consideration in the near future.

At this stage, therefore, it can be stated that Russia has not yet formally abolished or suspended the export duties on wheat, barley and corn. Rather, the proposal to set the rates at zero until the end of 2026 has been supported by the relevant government subcommittee and is expected to proceed to the next stage of government approval.

Russia’s existing grain export duty framework is based on Government Decree No. 117, dated 6 February 2021. The regulation establishes the framework for applying variable export duties to grain exports.