Lead blocked the way
The Fregat secondary lead production plant has stopped working. The media also found out that several other businesses are getting ready to close. The cause of this is the situation with exports.
The production equipment of Fregat LLC allows the production of refined lead, lead-antimony alloys, and other lead-based alloys. However, currently the enterprise's operations have been paused, as reported by the correspondent. MorningNews with reference to Kommersant.
Sources informed the publication about the events.
The Russian Ministry of Industry and Trade has not yet given the plant permission to export lead. At the same time, the domestic demand for this product is quite low.
According to information on the Spark Interfax website, ERMOCO LIMITED is the founder of Fregat LLC, and the CEO is Miyailovich Zhelko. The authorized capital is 1,046,007,400. The company participated in 2 tenders.
According to Kommersant, lead producers must obtain a license for the export of raw metal from May 15 to November 15. Initially, it was understood that the supplier must submit a license for the collection, recycling, processing, and disposal of old OSKAB lead-acid batteries. But an enterprise cannot have a license for all types of activities simultaneously.
However, it has recently been revealed that the proposed amendments to the licensing procedure state that it will be sufficient for a manufacturer to have a license for only one or a few types of activities. This will somewhat alleviate the situation. However, the Cabinet of Ministers' decision on this has not yet been published, as clarified by the publication.
At the Fregat plant, they state that the suspension of the enterprise's operations is currently planned for one month.
According to sources cited by the publication, some lead production plants are on the brink of shutdown, while others have undergone unscheduled repairs.
metal question
The issue of metal exports has been addressed before. In May, there was a report on the Russian Government's decision on quotas for the export of scrap and waste of ferrous metals.
The document introduced tariff quotas for the export of scrap and waste of ferrous metals from June 1, which will be valid until July 31.
“When exporting metal up to 540,000 tons, the duty will be 100 euros per ton. If this amount is exceeded, the duty will be 290 euros per ton. The established tariff quota volume (up to 540 thousand tons) is differentiated by regions, considering their industrial specifics. The mechanism for distributing the tariff quota allows for the possibility of exporting scrap metal that is not in demand among the main organizations of the Russian economy. Duties will only apply to exports outside the Eurasian Economic Union,” specified the press service of the Cabinet of Ministers.
On May 15, another resolution introduced a permit procedure for the export of unprocessed lead, its scrap, and waste. Such export will be possible under single licenses issued by the relevant ministry. The order will be valid until November 15 of this year.
It was clarified that this decision is aimed at preventing a shortage of lead in the domestic market in the context of sanctions against Russia.
There will be no shortage, but also exports?