Inter RAO threatens to stop electricity supplies to China due to customs duties

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Russia’s largest energy conglomerate, Inter RAO, may stop supplying electricity to China if Beijing does not agree to increase the purchase price of resources by the amount of the export tax introduced on October 1 “Kommersant” referring to company representative Alexandra Panina.

“Inter RAO plans to increase the price of electricity sales to countries outside the EAEU from October 1 due to the introduction of export duties,” he said.

According to Panina, the company has already reported a 7% price increase to China, Mongolia and Azerbaijan. If confirmation of acceptance of the new conditions is not received before September 30, Inter RAO will begin to impose restrictions or completely cut off previous volumes.

A representative from the energy company also said that future price increases may affect Georgia and Turkey, but deliveries are not planned for October.

21 September government published a decision Regarding the introduction of an export duty of 4-7% on goods supplied from outside the EAEU from 1 October 2023 to 31 December 2024. Oil and gas in particular are not taxable.

Experts allegationHe said that such a measure would bring additional income to the country’s budget.

Previously in Chinaappreciated The impact of sanctions on trade with the Russian Federation.

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