Russian President Vladimir Putin ordered to prepare amendments to fiscal laws providing for the use of a cushioning mechanism for synthetic rubber sales, according to the Russian news agency, Tass, citing the list of assignments posted on the Kremlin’s website early this week.
It said that taxation will depend on the exchange price of natural rubber on international markets, assuming the need of providing neutrality for the federal budget and synthetic rubber (SR) producers in the long run.
Furthermore, the Russian Ministry of Finance is reportedly discussing the support of Russian rubber producers in the form of negative excise duties.
The world’s 11th largest economy, the Russian Federation is a major player in the global rubber industry and the world’s largest consumer of rubber and the fifth largest producer, accounting for 9% of the global SR capacity, according to the International Rubber Study Group data.