Vedomosti reports that the WTO has concerns over the Russian government’s policy of export duty reliefs for greenfields. The agreement between Russia and the WTO assumes that export duties cannot be increased, while current tax regulations suggest that export duty reliefs are cancelled when the projects reach 16.3% IRR. Russia and the EU are in talks over the issue, according to the paper.
We see the news as neutral at this point and do not expect market reaction until there is more clarity over the issue.
Dmitry Loukashov, Alexander Kirevnin, Ekaterina Rodina, Elena Kopylova, Mikhail Zarkhi
VTB Capital analyst
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