Russia intends to stimulate the import of scrap metal

The Government of the Russian Federation has begun consideration of methods for reducing VAT on the import of scrap into the country in order to protect its consumers. Simultaneously with the introduction of this measure, it is planned to establish an environmental fee for its export.

After Dmitry Medvedev held a meeting with representatives of metallurgy on 07/16/2013 in Chelyabinsk, the relevant ministries received an order from the government to study the issue of measures designed to regulate the export-import of scrap. The results should be reported by 09.24.2013.

The Ministry of Industry and Trade, as well as the Ministry of Finance, refused to comment on the situation. The representative of the Ministry of Economic Development explained that their position has not yet been formulated. Only the Ministry of Natural Resources answered that their experts are already working on the question.

The proposal to reduce VAT on imports at the meeting was made by Alexei Mordashev (general director of OJSC Severstal). He pointed out a rapid increase in the number of mini-wraps working only on a scrap. According to him, while maintaining existing trends, already in 2014 the deficit of raw materials will become tangible. But the introduction of an environmental fee was initiated by the Ministry of Industry and Trade, but their representatives do not give comments.

At the moment, there are no current duties for export of this raw materials. Ilya & Spalding comments on the situation, representing such a measure as an ecological collection only a lever for the limiting of scrap exports. Moreover, according to him, such a restriction is contrary to the NTS norms.

However, metallurgists liked such initiatives. In their opinion, this will prevent a deficiency of raw materials and reduce possible risks.