Russia considering own carbon tax as EU prepares one -Vedomosti

Credit: REUTERS/MAXIM SHEMETOV

MOSCOW, Sept 23 (Reuters) - Russia is considering drafting its own carbon tax as the European Union prepares one to avoid cross-border taxes for Russian firms, the Vedomosti newspaper reported on Thursday, citing three sources.

The European Commission has outlined plans to impose a CO2 tariff on polluting goods from 2026 that will force some importers to pay carbon costs at the border on carbon-intensive products such as steel.

Moscow has said the tax could affect Russian goods worth $7.6 billion, including iron ore, aluminium, pipes, electricity and cement, and that the tax could eventually be broadened to affect oil, gas and coal exports.

"Neither the government, nor business, is interested in the EU collecting payments from Russian exporters at its discretion," Vedomosti cited a source close to the government as saying.

"The key logic is to get ahead of the EU with developing national regulation, to make it comfortable for business and to have the Russian offset measures be on a par with the European ones."

The mechanism's development is expected to take 12-18 months, one source said. The government plans to soon set up working groups with business representatives, the newspaper said.

(Reporting by Darya Korsunskaya and Alexander Marrow; editing by Jason Neely)

((alexander.marrow@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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