16 Jun 2010 18:48

New tax treatment for E. Siberian oil to add 353.2 bln rubles in revenue

MOSCOW. June 16 (Interfax) - Application of a new method for taxing oil from fields in Eastern Siberia will generate 353.2 billion rubles in additional budget revenue in 2010-2012, Deputy Prime Minister Igor Sechin said at a meeting of the government presidium on Wednesday.

The measure will provide an additional 11.9 billion rubles in 2010, 128.3 billion rubles in 2011 and 207 billion rubles in 2012, he said.

"The new method sets the size of the oil export duty at 45% of the amount by which the actual price exceeds $50 per barrel," Sechin said.

Once the rate of return reaches 15%, a company will have to pay 100% of the export duty.

"I request that this approach be approved," he said.

In response, Prime Minister Vladimir Putin said: "This must be discussed."

Russian Natural Resources Minister Yury Trutnev told a briefing after the meeting that the presidium had not reached a decision on introducing a new tax system for the East Siberian oil, and that further discussion would take place.

Oil from 22 East Siberian fields has been subject to zero export duty since January 2010. The Finance Ministry and Energy Ministry have been discussing the feasibility of preserving the zero duties in that time.

The Finance Ministry thinks that preserving the zero duty would result in a budget shortfall of 150 billion rubles this year, but the Energy Ministry reckons developing the deposits will have a multiple effect and enable oil-related industries to grow.

The government on June 11 introduced amendments to the 2010 budget and the period 2011-2012 to the State Duma, according to which the zero duty will be abandoned for a discounted duty on July 1, 2010.

The Finance Ministry thinks the discounted duty on east Siberian oil will be $69.9 a tonne if a decision to introduce it is finally reached.