Bloomberg News

Russia May Lower Oil Export Duty as Much as 6.5 Percent in June

May 11, 2012

Russia, the world’s biggest oil producer, may reduce its export duty on most crude shipments by as much as 6.5 percent from June 1 on lower Urals prices.

The standard duty may decline to $419.30 to $420.20 a metric ton, or $57.20 to $57.33 a barrel, according to Bloomberg calculations based on Finance Ministry data. That compares with $448.60 a ton in May.

The discounted rate on some eastern Siberian and Caspian Sea oil may fall in June to within a range of $210.50 to $211.10 a ton, compared with $232.40 this month.

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, may average $114.08 to $114.28 a barrel during this period, Alexander Sakovich, a Finance Ministry adviser, said by phone today. In the previous monitoring period, the crude price averaged $120.76, according to the ministry.

The duty for middle distillates and heavy products may drop to within a range from $276.70 to $277.30 a ton next month, from $296 in May.

A gasoline tax that Putin imposed from May 2011 to counter domestic shortages may be set in a range from $377.40 to $378.20 a ton, compared with $403.70 this month. That is 90 percent of the crude oil duty.

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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