New environmental tax can cost industrialists €1 bln a year

EU’s new carbon border tax can cost Russian suppliers of iron, steel, aluminum, and fertilizers at least €1.1 bln a year, RBC estimates.

Yekaterina Mayorova, Director of the Trade Negotiations Department at the Ministry of Economic Development and Trade, confirmed that RBC’s calculations were consistent with her department’s figures. Once the tax on products with a large carbon footprint is fully levied, the charges will reach this level.

“The carbon tax is still in its infancy. Lobbyists are haggling over the best way to regulate it. But there is no doubt it will be introduced, and the rates won’t be low,” economist Sergei Khestanov, Associate Professor at RANEPA, notes. “But it is too early to make any forecasts. This tax is still new, and the practice of collecting it has yet to be formed.”

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