15 Jun 2010 11:08

Export duty on Russian crude could plummet $43 to $248-8/tonne on July 1

MOSCOW. June 15 (Interfax) - The export duty on Russian crude oil could plummet to $248.8/tonne on July 1, from $292.1 at present.

Alexander Sakovich, the Finance Ministry official in charge of customs payments, told Interfax that Russian crude averaged at $71.28356 a barrel in the observation period May 15-June 14, inclusive, so the maximum duty on that basis would be $248.8155/tonne.

The duty on light petroleum products might be $179.9/tonne on July 1, down from $209.1 at present, and that on dark products - $96/tonne, down from $112.7.

Sakovich said the export duty on East Siberian oil, currently zero, could be $69.9 a tonne on July 1, unless the government approves Finance Ministry proposals on the procedure for determining duties in oil produced in the region.

Deputy Finance Minister Sergei Shatalov told reporters on Tuesday that Russia may introduce a discounted export duty on oil produced at Eastern Siberian deposits based on a coefficient of 0.45 and a cut-off price of $50 per barrel. He said the Finance and Energy ministries had approved a proposal to introduce the discounted duty on July 1, and planned to submit their coordinated proposal to the government before the middle of June to enable the monthly government decree on oil export duties to be amended on time. At present, a zero export duty applies to oil produced at 22 East Siberian fields.

The Finance Ministry's Sakovich said Tuesday that a decision on a duty for the East Siberian fields had not yet been reached.