Russia has extended its 20% export duty on soybeans until the end of August 2028, the Interfax news agency reported. The duty, which was originally set to expire in August of this year, will remain in effect. The government is also reportedly considering an extension of a 10% duty on linseed, also known as flax.
This measure is intended to curb sharp increases in domestic food prices and to foster the growth of Russia’s soybean processing sector. Historically, Russia has implemented or extended export duties on grains and oilseeds to maintain price stability within its domestic market. The initial imposition of the soybean duty in 2021 was prompted by rising global food prices and the necessity to secure raw materials for local processing industries.
The Russian government aims to prevent an excessive outflow of domestically produced soybeans, thereby stabilizing the prices of processed products such as soybean oil and soybean meal, and ensuring sufficient feedstock for local processors. The export duty includes a minimum of $100 per metric ton, which encourages producers to supply to domestic processors rather than prioritize international sales.
The extension of this duty is anticipated to have a limited impact on the global soybean market. While Russia is a soybean exporter, its export volumes are relatively minor compared to other major global suppliers. Furthermore, the European Union’s exemption of Russian agricultural exports from sanctions helps to mitigate potential disruptions to global supply chains.
Nevertheless, the prolonged duty could exert upward pressure on soybean futures prices in the short term. Market participants may have anticipated the duty’s expiration, and its extension suggests continued restrictions on Russian supply, which could support global price levels or alleviate concerns about potential declines. This development could influence investors in soybean-related exchange-traded funds (ETFs) and agricultural commodity futures markets. Some producers, however, might express concerns over reduced export profitability.
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