Russia Retains Zero-rate Duty on Oil

Russia will retain the zero-rate export duty on East Siberian oil for several months and perhaps until the end of the year, Kommersant has reported. The daily reported that this decision was made during a 12 March closed-door meeting between representatives of oil companies and Deputy Finance Minister Sergey Shatalov and Deputy Energy Minister Sergey Kudryashov. An official announcement is expected in the coming days.

A political decision to leave the zero-rate duty in place will be made at the highest level of government very soon, Shatalov said unofficially during an economic forum in Zurich. Meanwhile, the Finance Ministry will forward the government a draft resolution which will leave the duty in place for April.

Kommersant reports that executives from Rosneft, TNK-BP and Surgutheftegaz appeared pleased after the meeting, but declined to comment on the negotiations. Kudryashow also said it was “too early” to speak of conclusions drawn at the meeting. Kommersant reported that sources said the oil companies received assurances on Friday that the zero-rate export duty on East Siberian oil will remain in place at least several more months and noted that each month the zero-rate duty is in place saves the oil companies 10 billion rubles

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