Russian businessman on higher export duties for scrap metal

Russia may complicate its relations with the European Union by imposing higher export duties for scrap metal, as the latter may further drop metal export quotas for Russia in return, President of the MAIR industrial group Viktor Makushin told RBC today. "Such EU actions would be quite logical and fair. But lower quotas is not the only thing that EU may do about Russia," the official stressed. In his opinion, "the EU is likely to choose even tougher measures."

An increase in scrap metal prices in Europe will be destructive for profits of metal smelters which "are far from being perfect now." It's still to early to speak about the period when these export duties will be raised. The chances are "50x50" here, the official stressed. However, the minimum period of time here would be one month. From the economic point of view, it would be better to raise them either now or in fall. In summer the scrap metal market is normally overstocked.