Bloomberg News

Russia May Raise Oil Export Tax 3.5% in December on Higher Urals

November 15, 2011

Nov. 15 (Bloomberg) -- Russia, the world’s biggest oil producer, may increase its export duty on most crude shipments by 3.5 percent on Dec. 1 after prices rose.

The standard duty will probably climb to $406.60 a metric ton ($55.47 a barrel) if the government maintains a reduced tax rate of 60 percent, which was first applied in October, according to Bloomberg calculations based on Finance Ministry data. The duty was set at $393 a ton this month.

The discounted rate on some Eastern Siberian and Caspian Sea oil may increase to $200.90 from $190.70 this month.

Russia bases the export duties on the average Urals price from the 15th day of one month to the 14th of the next. Urals, Russia’s benchmark export blend, averaged $111.17 during the most recent monitoring period, Alexander Sakovich, a Finance Ministry adviser, said by phone today.

Prime Minister Vladimir Putin must sign off on the levies for them to come into effect. The government moved to the so- called 60-66 formula on Oct. 1, cutting the oil tax rate to 60 percent from 65 percent previously, and unifying the duty on refined products at 66 percent of that levy. The coefficient for the crude tax hasn’t been set in law and is subject to monthly approval.

The duty for middle distillates and heavy products may climb to $268.30 a ton next month from $259.30 this month.

A special gasoline tax that Putin imposed starting May 1 to fight domestic shortages may rise to $365.90 a ton, Sakovich said. That is 90 percent of the crude duty.

Global commodities statistics: FDM ENST<GO>

--Editors: Torrey Clark, Stephen Cunningham

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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