MOSCOW, April 29: Russia’s foreign trade commission said on Monday it was recommending the country axe its five per cent export tax on steel to offset new US import tariffs, Finance Minister Alexei Kudrin said.

The commission has taken the decision to get rid of all tariffs on steel exports. Given the introduction of restrictions in the world steel market it is neccessary to support our producers, he said after a meeting of the Commission on Protective measures in Foreign Trade.

The commission’s recommendation will go to Prime Minister Mikhail Kasyanov for approval, but this is seen as a formality.

The United States imposed tariffs of up to 30 per cent on some steel imports from March 20 to protect its ailing steel industry.

At the time, the Russian government estimated the hefty tariffs could cost the country $400-$500m a year in revenues, while steel producers said they would increase market volatility and damage their struggling industry.

In 1999 Russia entered into a voluntary restraint agreement on steel exports to the US.—Reuters