Russia to Increase Oil Export Duty

15 June 2009 (Last Updated June 15th, 2009 18:30)

The deputy head of Russia's finance ministry’s customs department Alexander Sakovich said that his country will raise oil export duty from the current $152.80 to $212.60 a metric ton from 1 July 2009, subsequent to trends on worldwide oil markets. As of 1 July the duty on light petrole

The deputy head of Russia's finance ministry’s customs department Alexander Sakovich said that his country will raise oil export duty from the current $152.80 to $212.60 a metric ton from 1 July 2009, subsequent to trends on worldwide oil markets.

As of 1 July the duty on light petroleum products will increase to $155.50 from the present $115.20 a ton and for heavy petroleum products it will rise to $83.80 from the present $62.10 a ton.

In 2008 the government suspended its previously established bimonthly adjustments of export duties based on the price of the Urals blend on worldwide oil markets, and from 1 December 2008 moved to setting duties for oil and oil products on a monthly basis to respond more quickly to changes in global oil prices.

The worldwide financial crisis has forced Russia, which obtains a large part of its revenues from oil exports, to slowly diminish the ruble amid capital flight and a drop in worldwide oil prices, which decreased from their highest of $147 per barrel in July 2008 to about $40 per barrel in early 2009, before climbing back in recent weeks to more than $70.