It was reported that Russia’s Ministry of Finance might impose a mineral extraction tax (MET) related to global prices on the nation’s iron ore, coking coal, fertilizer producers, and ore mined by Nornickel.

Besides, the Ministry of Finance also proposed a plan to impose a formula-based profit tax on the companies based on their previous domestic dividends and investments.

If the MET is approved by the government, it will depend on the global price benchmark and the volume of mined products, which will affect fertilizers, iron ore, and coking coal, as well as nickel, copper, and platinum group metals, contained in ore mined by Nornickel.

Separately, the approvement of the formula-based profit tax will increase the profit tax of companies that have spent more than capital expenditures on dividends in the past five years from 20% to 25%-30%.

However, it is still unsure how much the proposed MET and the profit tax will bring to Russia’s treasury.