The Russian Ministry of Finance has prepared and submitted for approval a draft law introducing an excise tax on steel imports, according to State Secretary and Deputy Finance Minister Alexey Sazanov. Speaking to local media, Sazanov stated that the initiative follows requests voiced by industry representatives during multiple government meetings. He confirmed that the draft law has already been circulated among relevant state agencies for review, with authorities currently awaiting feedback.
Implementation timeline tied to approval process
According to Sazanov, the timing of the new excise tax will depend on the pace of inter-agency approvals. However, the measure is expected to come into force within the current budget cycle. “In any case, this will happen either sometime in 2026 or on January 1, 2027, once the approval process is complete,” Sazanov noted, adding that the proposal has already been sent to government departments for consideration.
Mechanism to mirror domestic excise tax system
The proposed excise tax mechanism for imported products is expected to follow the same structure as the existing system applied to domestic steel producers.
Russia introduced an excise tax on crude steel production in January 2022, set at 2.7 percent of monthly slab selling prices. Since August 2022, the tax rate has been subject to a zero threshold if slab prices fall below RUB 30,000/mt.
Part of broader support measures for steel sector
The initiative forms part of a broader policy package aimed at supporting Russia’s ferrous metallurgy sector. The proposal to introduce an excise tax on imported steel was previously discussed during a government meeting involving First Deputy Prime Minister Denis Manturov and Deputy Prime Minister Alexander Novak.
Earlier, Industry and Trade Minister Anton Alikhanov had also outlined additional support measures, including a possible postponement of the mineral extraction tax on iron ore and the liquid steel excise tax until the end of 2026. However, the Russian Ministry of Finance and the Ministry of Economic Development of Russia opposed delaying these taxes.
In parallel, authorities have considered granting a three-year exemption from the excise tax for strategic investment projects following the completion of their investment phase. Overall, the proposed tax on imported liquid steel products signals Russia’s continued efforts to balance domestic industry support with fiscal policy, while potentially reshaping trade flows in the steel market.