Russia to Raise Taxes on Mineral Resources in 2011

According to the Ministry of Finance of the Russian Federation, as of January 1, 2011, Russia will raise the mineral mining tax (mining tax) on natural gas by 61%, and raise the export duties on copper, nickel, and petroleum products. Other plans include: raising mining tax on crude oil.

From 2013, the export tariffs on petroleum products shall be 60% of that on crude oil; in the coming 3 years, the consumption tax on gasoline and diesel shall be raised by 1 rouble.

As per the plans of the Ministry of Finance, in 2011, the mining tax on natural gas will be raised by 61%, and will respectively grow mildly by 6% and 4.5% in 2012 and 2013.

The Ministry of Finance of the Russian Federation also proposed to restore the export tariffs of 10% on copper, determine the export tariffs on nickel according to the market prices, and further raise the consumption tax on tobacco products from previously agreed level between 30% and 40%.

The export tariffs on nickel are determined from 5% to 30%, starting from USD 12,000 per ton, levied by 5.0%, 7.5%, and so on. The highest export tariff shall be 30%, only levied on part exceeding USD 20,000 per ton. New export tariffs on nickel will take effect in 2011 or earlier.