OREANDA-NEWS. August 20, 2009. According to the government website, the Commission for Support Measures in Foreign Trade, headed by the first deputy of Prime-Minister Viktor Zubkov, proposed the imposition of an export duty (progressive scale) on nickel, reported the press-centre of OTKRITIE FC.

There were no specific details, save one - exporters may be required to pay duty once the nickel price exceeds US12,000 per ton on LME. If implemented, this duty would primarily affect Norilsk Nickel (NR), Russia’s biggest nickel producer and exporter.

View: We are holding back our in-depth analyisis of this potential development, since the proposal seems to be at a very early stage of discussion. Such a measure would surely face significant opposition from Norilsk Nickel, which now appears to have strong lobbying power. Nevertheless, if this duty is implemented, it may exert a significantly negative impact on Norilsk's earnings, as nickel contributed c52% to the company’s overall revenue in 2008. We might see a negative reaction on the market to this news.