Bloomberg News

Russia Cuts January Crude Export Tax 2.2% After Urals Declines

December 30, 2011

Dec. 29 (Bloomberg) -- Russia, the world’s biggest oil producer, cut its export duty on most crude shipments by 2.2 percent from Jan. 1 after prices fell.

The standard tax will fall to $397.50 a metric ton ($54.23 a barrel), according to a decree signed by Prime Minister Vladimir Putin and published today in the government’s Rossiyskaya Gazeta. That compares with $406.60 this month.

The discounted rate on some Eastern Siberian and offshore oil will fall to $194.10 a ton from $200.90.

Russia bases the export duties on the average Urals crude price from the 15th day of one month to the 14th of the next. Urals, Russia’s benchmark export blend, averaged $109.09 a barrel during the most recent monitoring period, according to the Finance Ministry.

Starting in October, the government lowered the crude export duty by applying a coefficient of 60 percent of the average Urals price, down from 65 percent, and unified the tax on most refined products at 66 percent of that levy.

The duty for middle distillates and heavy products will be set at $262.30 a ton next month, from $268.30 in December.

A special gasoline tax that Putin imposed from May 1 to fight domestic shortages will fall to $357.70 a ton, from $365.90 this month. That is 90 percent of the crude duty.

The government set the duty on liquefied petroleum gases, such as butane and propane, at $201 a ton, down from $221.80.

--Editor: Brad Cook.

To contact the reporter on this story: Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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