Putin signs law on tariff preference to friendly states

Russian President Vladimir Putin on Monday signed a law that authorizes the government to temporarily reduce or fully eliminate export duties of certain goods to "friendly countries," reported Xinhua

The law will empower the Russian government to lower export duties on shipments to friendly countries for a period of up to six months. The government can also temporarily reduce or cancel export duties for a certain amount of products for no longer than one year.

When this measure was first introduced in August, Russian Prime Minister Mikhail Mishustin said it aimed to increase Russian exports to friendly countries.

"To incentivize the growth of grain, fertilizer, and raw material supplies to friendly countries, the government suggests introducing a special flexible tool for tariff preferences," the government cited Mishustin as saying.

"This measure will make it possible to support Russian businesses faced with external restrictions," he said, "regions where changes in logistical routes have led to an increase in transportation costs and, as a consequence, to a rise in the price of exports for local businesses."