A 5 percent export duty on nickel and copper may be scrapped in 2014, two years earlier than planned, to support indebted metals and mining companies struggling with weak prices, Vedomosti reported Tuesday.
The move, which will benefit mining giant Norilsk Nickel, the world's biggest nickel producer, is one of 13 measures that the newspaper said Prime Minister Dmitry Medvedev would order his ministries to work up by Dec. 23.
Medvedev met the steel and mining companies, including aluminum producer RusAl, coal miner Mechel and steelmaker Evraz, to discuss their debt loads and ways to boost industrial growth on Nov. 25.
The metals industry is under pressure globally due to sustained weak prices, but the three Russian firms are particularly vulnerable due to their high debt levels.
Mechel is undergoing debt restructuring negotiations. The firm's debt-to-core-profit ratio was 9.0 in the first quarter, while one of its covenants states that the ratio should not have exceeded 7.5 in the first half of 2013.
Net debt to core profit, or EBITDA, ratio — a measure of a company's ability to pay off debts — stood at 11.8 at RusAl in the first six months of the year, and 4.0 at Evraz.
According to Vedomosti, which cited draft minutes of Medvedev's meeting, other proposed measures to support the industry include subsidizing costs related to the idling of plants and an improved mechanism of state guarantees for refinancing debt built up during large-scale investment programs.
Medvedev's spokeswoman, Natalia Timakova, declined to comment on the report.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.