There is a danger that the Russian government will decline to extend its longstanding ban on rawhide exports. If this happens, the domestic shoe industry may experience the bankruptcies of several dozen companies that annually pay 8.2 billion rubles (€112m-$126m) into the federal budget in taxes and other fees. The warning was given to the government in an open letter filed by the Russian Union of Tanners and Footwear Manufacturers.
The Russian government originally banned rawhide exports from the country in 2014 because their uncontrolled exports had caused a shortage in the domestic shoe industry, as the cattle population has been declining. The export restrictions positively impacted pricing in the domestic market.
The Russian government has extended the prohibition to export rawhides for five years in a row. The last ban expired last Jan. 29. Although the Russian Industry and Trade Ministry has already prepared a decree to extend it once more, this time the step has been blocked by the Federal Anti-Trust Service.