Russia’s largest energy group, Inter RAO, is weighing the possibility of halting electricity supplies to China if Beijing does not agree to raise the price of energy imports enough to offset the export duties that started on October 1. A company spokesperson indicated that the export tax is prompting a price adjustment strategy for shipments outside the Eurasian Economic Union (EAEU).
Inter RAO plans to lift the price of electricity sold to countries outside the EAEU in response to the new export duties, a move aimed at preserving margins amid the policy shift.
It is reported that the company has already informed buyers in China, Mongolia, and Azerbaijan of a roughly 7 percent price increase. If these new terms are not accepted by suppliers in time, Inter RAO could restrict or entirely halt previously agreed volumes from October onward.
Industry sources added that the forthcoming price adjustments might extend to Georgia and Turkey, although deliveries to those markets are not planned for October.
A government decision introduced an export duty ranging from 4 to 7 percent on goods exported from outside the EAEU, effective from October of this year through the end of 2024. Certain energy commodities, including oil and gas, are exempt from taxation.
Experts noted that the measure would generate additional budget revenue for the country as it broadens its fiscal toolkit in the face of evolving energy trade dynamics.
In earlier assessments, analysts observed the potential impact of sanctions on Russia’s trade flows with major partners, and the present policy changes are being watched closely for their broader implications on regional energy markets and pricing strategies. (Attribution: market reporting and official government briefings)