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With world iron ore prices double the level of one year ago, President Zelenskiy defended a draft law passed last week to increase taxes on iron ore.

“The price is very high today,” he said at his press conference. “You can slightly increase budget revenues. I think it’s fair.” Moving from a tax of 11-12% of iron ore as it come out of the ground, the new tax scale would range from 0.1% to 16% on iron concentrate and pellets ready for export. Using as a marker China’s price for one ton with 62% iron content, the tax would be 16% for shipments selling at over $180 a ton. With yesterday’s price at $210 a ton, iron has traded over $180 for the last month.

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