Russia may introduce 10% export duty on linseed in October

In the next two to three weeks, the Russian government may approve a 10% export duty on linseed, as announced by Mikhail Maltsev, Executive Director of the Russian Oil and Fat Union, during the “Agroinvestor: PRO Crop Production” conference. According to Maltsev, this measure aims to support domestic processing enterprises, as linseed remains the only crop without adequate protection to encourage in-country processing. Previously, the industry proposed a 30% duty rate, similar to that for rapeseed, given the economic competition between these crops in processing. However, the Ministry of Agriculture and the government opted for a lower rate due to limited linseed processing capacities.

In spring, the Oil and Fat Union submitted a proposal to the Ministry of Agriculture to introduce duties to reduce raw material exports and redirect them to the domestic market. Maltsev noted that a significant portion of the linseed harvest still cannot be fully processed, making the 10% rate a compromise. Forecasts suggest that in the 2025/26 agricultural year, Russia’s linseed production will reach 1.3–1.4 million tons, with the new duty enabling processors to handle at least 600,000 tons.

Tags: Russia, duties