Russia Mulls Steel Measures to Combat Rising Construction Costs

Russia is looking at introducing measures to cool a rally in steel prices to the highest in more than a decade and support the construction industry, Bloomberg News reported. One option may include a mechanism that could be used to tax sales over a certain price to provide funds to aid the construction sector, according to two people familiar with government discussions. Such a move has been proposed by the Industry Ministry. Economy Minister Maxim Reshetnikov said on Wednesday that he doesn’t see a formula-based export tax as necessary or feasible because it may lead to some steel-product shortages, according to Interfax. Although some ministries have pushed for such a tax, it makes more sense to support steelmakers’ customers, the newswire cited him as saying. The Economy Ministry, which plays a role in setting taxes, will take part in discussions of tax code changes, a spokeswoman told Bloomberg. Read more.