The State Duma (lower house) of the Russian Federation has passed the changes to the country's tax code, which will be implemented on January 1 next year. The new tax code will replace the current 15% export tariff.

The new calculation method refers to domestic slabs, billets, and scrap prices. As long as a local Russian company produces the steel, whether it is sold domestically or exported, will be imposed the excise duty.

The tax rate will vary depending on the method of steel production. For example, if the average slab FOB price is less than US$300 per ton in the month, the excise tax will drop to zero.

The new excise tax has been approved by the State Duma (lower house) and will be passed to the Council of the Federation (upper house) for approval and signed by the President.