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1Q23. Meanwhile, there will be a temporary amendment providing for the distribution of 46% of MET to the federal budget, 54% – to the regional budget from 10 March to 10 May 2023 (now 100% of MET on diamonds goes to regional budgets).
Polymetal to postpone Veduga launch for 2 years until 2027 due to the replacement of Western equipment, Interfax informed, citing CFO Maxim Nazimok. Equipment costs have become higher driven by logistics as well as parallel imports, Nazimok noted. He also said that the company considers redomiciling to Kazakhstan, Hong Kong, or the Arab Emirates.
9.2.12 Mines and Minerals - steel & iron
9.2.13 Mines and Minerals - fertilisers
Severstal lost $400mn due to trade restrictions, Interfax reports citing CEO Mordashov. Severstal lost $400mn due to the seizure of Western accounts and warehouses after the trade restrictions were imposed. Mordashov also commented steel excise tax is estimated at 20-30% of the steelmaker next year’s profit.
Government approved introduction of export duty on Russian fertilisers at flat 23.5% rate from 1 January 2023 and until the end of the year, if export prices stay above $450/t, it published on its website. If export prices fall below $450/t the export duty will be zero. No surprise. Given that the export duty level (23.5%) was previously disclosed by the government we think it should not come as a surprise. Relatively high export duty threshold will enable fertilizer producers like Phosagro to keep their margins. At our projected DAP/MAP prices of c$616/t and NPK at around $600/t, export duty for Phosagro could amount to Rb17bn next year. We think that the impact from the export duties is material, but not critical. Phosagro will continue to generate positive FCF and have resources for dividends.
Russian fertilizer producer PhosAgro expects fertilizer production to increase by 5% to more than 10.9mn tonnes in 2022, the company said in a statement on December 16. The company confirmed an earlier guidance of fertilizer production increase by 6.7% on the year to 8.1mn tonnes in January–September. PhosAgro will spend more than RUB250bn in investment in five years and rUB64bn in 2022, the company said.
Phosagro's investments in the next five years will surpass RUB250bn rubles ($3.8bn), the company said on Friday. "This year, the company will allocate around RUB64bn rubles for investments (including capitalized
172 RUSSIA Country Report January 2023 www.intellinews.com