Bloomberg News

Russia Sets Export Tax on East Siberia Oil, Lowers Regular Duty

June 29, 2010

Russia will impose a duty on exports of eastern Siberian crude from July 1 as the government seeks to narrow a budget gap, while lowering the duty for other fields by 15 percent as oil prices declined.

The duty on previously exempt eastern Siberian fields will be set at a discounted rate of $69.90 a metric ton, according to an order signed by Prime Minister Vladimir Putin and posted today on the government website. OAO Rosneft’s Vankor deposit, TNK-BP’s Verkhnechonsk and OAO Surgutneftegaz’s Talakan qualify for the tax break.

Budget deficits of developed countries carry “hidden risks” and must be gradually reduced starting next year, Finance Minister Alexei Kudrin said today. President Dmitry Medvedev called on Russia today to halve the gap in 2013 from last year’s 5.9 percent of gross domestic product, the first shortfall in a decade.

Russia lowered the tax for traditional crude deposits by 15 percent to $248.80 a metric ton ($33.94 a barrel), after prices for the country’s Urals blend fell to an average $71.28 a barrel during a monitoring period from the 15th day of last month to the 14th day of this month.

The export tax on light oil products was cut to $179.90 a ton. The duty on heavy products declined to $96.90 a ton.

To contact the reporter on this story: Maria Levitov in Moscow at mlevitov@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net


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