This document will limit exports of semi-finished leather products, due to a shortage on the domestic market, in the interests of domestic end users.
Reference
This document has been drafted by the Ministry of Industry and Trade.
The resolution amends a list of goods and products (hereinafter referred to as the List) that are perceived as vital to the domestic market, and that may be covered by temporary export bans and restrictions in exceptional cases. The list shall include the following additional goods and products: unprocessed bighorn cattle hides, including buffalo hides or those of animals in the equine family, as well as other unprocessed hides; tanned raw leather made with the above feedstock (hereinafter referred to as semi-finished leather products).
The above List was originally approved by Government Resolution No 877 of 15 December 2007.
The changes listed here shall be introduced in the List for the purpose of eliminating shortages of semi-finished leather products on the domestic market, caused by their expanding export volumes under conditions of lower domestic prices. Exports in this area negatively influence the development of the national leather, footwear and related industries.
Currently, Russia consumes 150,000 tonnes of leather stock, specifically, semi-finished products, while the volume of semi-finished leather products does not exceed 70,000 tonnes. Moreover, the export volumes account for over 30% of this amount. Substantial exports of semi-finished leather products are facilitated by a gap between domestic and global prices for this feedstock. In fact, Russian prices are 20-25% lower.
This resolution will temporarily limit exports of semi-finished leather products, due to shortages on the domestic market, in the interests of the domestic consumers of these products.