Russian oil companies are not satisfied with 22.8 percent cut in duty on oil export
Inked by Prime Minister Vladimir Putin, the October 31, 2008 ruling was to take effect in ten days after the official promulgation, i.e. no sooner than in the middle of November. But first time in history of government’s orders related to oil export duties, this ruling has come into force post factum, i.e. from November 1, 2008, Kommersant business newspaper reported.
So, starting from November 1, 2008, the duty on crude oil export equals $287.3 per a ton instead of $372.2 per a ton, charged in October. The duty on light petroleum amounts to $205.9 per a ton (vs. $263.1) and the dark petroleum duty stands at $110.9 per a ton ($141.7).
The disputes about the duty on oil export were underway all past week with the parallel meetings chaired by Vice Premiers Alexei Kudrin and Igor Sechin. Prime Minister Vladimir Putin stepped in Friday, and the actual benefits for the oil exporters were announced on Saturday.
Backed up the Economic Development Ministry, oil companies demanded to calculate duties based on the Urals prices of the second half of October ($60 per a barrel), pressing for the duty of $195 per a ton from November 1.
Finance Ministry suggested taking into account the average price of the fist half of October ($79.4), fixing the duty at $287 per a ton from December 1. It was Vladimir Putin that made the ultimate choice. “By decision of prime minister, the duty will be $287.3,” First Vice Premier Igor Shuvalov summarized the discussion. “The decision is well-balanced. We have to think of filling up the federal budget,” the first vice premier emphasized.
Author:
Ksenia Kochneva
