Russia Implements 10% Flax Export Duty, Establishes Regional Corn Quotas

New Export Duty on Oil Flax

The Russian Federation has implemented a 10% export duty on oilseed flax, a measure that took effect in October. This decision, announced by Mikhail Maltsev, Executive Director of the Oil and Fat Union of Russia, aims to bolster the nation's domestic processing capabilities for this crop. The move is intended to redirect raw flax from export markets towards internal processing enterprises, thereby stimulating local industry.

Initially, industry organizations had advocated for a higher duty of 30%, aligning with tariffs applied to rapeseed. However, due to existing limitations in flax processing infrastructure, the government opted for a more moderate 10% duty as a compromise. This tariff is projected to significantly impact the 2025/26 marketing year, with an anticipated oilseed flax production of 1.3–1.4 million tons. The new duty is expected to facilitate the domestic processing of at least 600,000 tons of this volume.

Regional Corn Export Quotas Implemented

In a separate but related move to manage agricultural exports, the Russian government established regional tariff quotas for duty-free corn exports. These quotas specifically applied to producers in Primorsky Krai and Amur Oblast, and were in effect from February 15 through June 30, 2025.

Under these regulations, agricultural producers in Primorsky Krai were allocated the right to export 337,000 tonnes of corn without tariffs. Similarly, producers in the Amur Region were permitted to export 200,000 tonnes of corn duty-free. This decision was made with consideration for the production volumes within these specific regions, aiming to support local agricultural producers and manage export flows effectively.

Government's Broader Agricultural Export Strategy

These recent measures are part of Russia's ongoing strategy to regulate its agricultural export markets. The introduction of duties and quotas reflects a dual objective: to support domestic processing industries by ensuring a steady supply of raw materials and to manage the export of key agricultural commodities. The government frequently adjusts export duties and quotas on various grains and oilseeds, often in response to harvest yields, domestic market conditions, and global price fluctuations.