18 Jun 2018 15:35

MinFin proposal empowers government to raise export duty on oil products to 90% beyond 2019

MOSCOW. June 18 (Interfax) - A draft bill now under discussion would empower the government, as an emergency measure, to raise the export duty on oil products to 90% of the crude oil export duty beyond 2019, the head of the Finance Ministry's tax and customs policy department Alexei Sazanov told journalists.

"The 90% export duty for this year has already been submitted to the government in the framework of excess profit tax amendments. In terms of the ability to establish the export duty on oil products after 2019, the issue is now being worked up that would maintain this ability for the government beyond 2019. In any case, this is reflected in the draft bill," he said.

On June 14, Sazanov said the Energy Ministry and Finance Ministry had not made a final decision on the criteria for imposing a 90% export duty on light oil products as an emergency measure to protect the domestic fuel market.

"It's clear that we need to protect the market in the event of extraordinary circumstances. The Energy Ministry and oil companies, for example, justifiably say that no loopholes should be left in legislation in the long term and this instrument, which hangs over them like the sword of Damocles, should be removed. As a result, banks will look at it as a potential risk when issuing loans and will reduce the return on their projects," Sazanov said.

"We are seeking to find a balance. This is a negotiation process, a decision has not been made yet. This is just one solution," Sazanov said.