Russian steelmakers discuss tax on imported steel: reports

Russian steelmakers are discussing approaching authorities with a proposal to introduce an excise tax on steel imported into Russia, including rolled steel products.

This measure would put Russian producers on a par with suppliers, including those from China, who import steel at lower prices, several Russian steel industry sources told state agency Interfax.

"We're still considering how to implement this idea, but it is simple: since the government has introduced an excise tax for domestic producers, it's logical that competitive conditions should be equal for everyone,” said a source at a major metallurgical holding company. “Otherwise, Russian producers are forced to pay the excise tax, which currently represents a significant markup on production costs and leads to either higher prices for manufactured products or lower profitability."

According to him, excise tax can be calculated at the rate in effect in Russia and paid based on the volume of imported products.

Another steelmaker source was quoted as saying: "We haven't yet filed any appeals to the Ministry of Industry and Trade. Discussions are ongoing, and we're considering various options. There was a proposal to introduce an excise tax on imported steel, but there are many nuances and factors that constrain such a measure."

Another source also said the issue was raised at a meeting of steelmakers, but noted that introducing an excise tax on imported products "is rather questionable – increasing duties on imported steel seems more realistic.".

Neither Russia’s Ministry of Industry and Trade nor the Russian Steel Association replied to Kallanish request for comment before deadline on Friday. However, the ministry told Interfax that it is "ready to consider such an initiative together with the industry community." However, no such requests have yet been received.

According to Severstal estimates, the share of imports in the Russian steel market in the third quarter of 2025 was 9.6%, compared to 7.6% at the beginning of the year and 6.3% in the first quarter of 2024. Moreover, the increase in the share of imports coincides with a decline in demand for steel, which, according to forecasts from the Russian Steel Association, will fall this year by 14% on-year.

Earlier this month, Severstal's main shareholder, Alexey Mordashov, spoke about how the weakening competitiveness of Russian producers due to the strong rouble exchange rate seriously raises the need for measures to protect the domestic market from imports.

In its October review, T-Investments noted that in August, hot-rolled steel imports into Russia increased by 50% on-year, reaching approximately 96,000 tonnes. The share of foreign steel products in Russian consumption was 11%, the highest since 2022. In September, hot-rolled steel imports grew by 30% on-year to 95,000t.

In October, Russia’s government adopted a resolution deferring the payment of excise taxes on liquid steel and mineral extraction tax on iron ore until 1 December 2025. This applies to taxes due between September and November of this year.

Source:Kallanish