Russian Govt Recommends Progressive Nickel Duty

MOSCOW, Aug. 21 -- A Russian government commission has recommended the introduction of progressive export duties for nickel and the maintenance of current high import duties for cars, the government said on Wednesday.

    "The commission has agreed a proposal to apply progressive export duties for nickel. The introduction of export duties is envisaged in case the price for nickel on the London Metal Exchange (LME) exceeds $12,000 per tonne," the commission said in a statement.

    Russian Prime Minister Vladimir Putin signed an order in January to abolish export tariffs of 5 percent on nickel to support leading Russian miner Norilsk Nickel (GMKN.MM) in the midst of an economic crisis.

    The three-month nickel contract on the London Metal Exchange MNI3 earlier this month rose to above $20,000 per tonne, the level it held in August last year before falling to about $9,000 per tonne.

    Norilsk, the world's largest nickel and palladium producer, said last month output of all its metals declined in the first half of this year from the same period a year ago.

    (Source: Reuters)