Russia impose six-month ban on raw hide and semi processed leather exports

Russia
Published:  20 February, 2014

Russian Prime Minister Dmitry Medvedev has signed a new decree with the objective of promoting leather and footwear industries of Russia, under which the exports of raw hides and skins for leather and semi-finished leather from the country would be banned for a temporary period of six months.

According to a statement issued by the Ministry of Industry, the decree alters the list of goods essential for the domestic market, and the exports of which could be banned or restricted by the Government during exceptional cases.

The decree No. 877 of the Russian Federation now includes goods such as raw hides and skins of bovine or equine animals as well as other hides and tanned leather, the exports of which are temporarily banned by the Government in order to reduce the scarcity of semi-finished leather in the domestic market.

The aim of the ban is to reduce the shortage of semi-finished leather in the domestic market caused by the increasing volume of its exports due to low prices of Russian leather, which is adversely affecting the development of the domestic leather, footwear and other related industries.

According to the Ministry of Industry, the domestic demand for semi-finished leather is 150,000 tons, whereas the supply is only 70,000 tons. More than 30% of the semi-finished leather from the country is exported as the prices of Russian leather are 20-25% lower compared to international prices, the Ministry states.

The scarcity of semi-finished leather in the country also adversely affects the needs of the armed forces of the Russian Federation, which require at least 15,000 tons of high-quality raw materials for manufacturing leather goods. 

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