MOSCOW (Pakistan Point News / Sputnik - 24th August, 2018) Windfall profits of major Russian mining and chemical sectors' exporters from the weakening of the ruble are estimated at 700 billion rubles ($10.35 billion), Kremlin aide Andrei Belousov said on Friday.
Earlier on Friday, Belousov and First Deputy Prime Minister, Finance Minister Anton Siluanov met with heads of Russian metal, mining and chemical companies to discuss higher tax rate on their above-average profits. Following the meeting, Siluanov said Russian authorities had told companies that the tax burden would be unchanged.
"The additional 10 rubles per dollar over the last year resulted in today's 67-68 rubles [per dollar], and so this increase provides that windfall profits from Primary exports, excluding oil, gas and coal, and, of course, machine building and metallurgy, amounted to 700 billion rubles. This is a huge resource, part of which, of course, can be directed to the implementation of the agenda, which was discussed today," Belousov told journalists after the meeting with business.
Russian mining and chemical companies are one of the country's main export earners. The exporters' profits now see some so-called windfall gain due to macroeconomic factors such as ruble's weakening against major currencies, dollar and euro, in which their products are usually priced.
US Dollar strengthened against ruble from a multi-month low at 55.57 rubles in late February to more than a two-year low at 69 rubles on Thursday. It trades at 67.41 rubles as of 6.18 p.m. Moscow time (15:18 GMT) on Friday.
