Russian government commission backs 10% duty on flax exports, sources say

MOSCOW, Aug 26 (Reuters) - Russia, the world's largest producer and exporter of oilseed flax, is preparing to introduce a 10% duty on export of the crop, two sources familiar with the matter told Reuters on condition of anonymity.

A Russian government commission approved the introduction of 10% duties, the sources said. A final decision will be made by the government, the sources added.

According to forecasts by the Russian Oil and Fat Union, Russia will produce more than 1.5 million tons of oilseed flax this year, compared to 1.346 million tons in 2024.

Exports in the 2024/25 season ending on August 31 amounted to 1.35 million tons with domestic processing of only 50,000 tons.

If an export duty on oilseed flax is introduced, the industry will be able to process at least 600,000 tons of flax in the 2025/26 season. The rest will most likely be sent to foreign markets as raw materials, the Russian Oil and Fat Union said Reuters.