Russia to Raise 7.6% Export Duty on Oil in May, 2011 as Urals Climbs

Russia may raise the export duty on most crude oil shipments by as much as 7.6 percent on May 1 after Urals prices climbed to the highest level since the 2008 financial crisis.

The standard tax rate will probably be in the range of $453.40 (about $62 a barrel) to $456 a metric ton, up from $423.70 a ton in April, according to Bloomberg calculations based on Finance Ministry data. The discounted rate on oil pumped via Russia's East Siberian Pacific Ocean pipeline to Asia and from the Caspian Sea may reach $211.60 to $213.30 a ton, from $191.

Russia sets the duty based on the average Urals price from the 15th day of one month to the 14th day of the next. Urals, Russia's benchmark export blend, will probably average $114.42 to $114.95 during this monitoring period, Alexander Sakovich, a Finance Ministry adviser, said today by phone.

Brent and Urals, Russia's benchmark export blend, have traded at an average above $100 a barrel in the past two months, the first time since August 2008 as unrest in northern Africa and the Middle East disrupted some oil flows.

The export tax on light oil products may rise to a range of $303.80 to $305.50 a ton from $283.90. The duty on heavy products may be within $211.70 to $212.90 a ton, compared with $197.90. The government changed the calculation for oil-product taxes to a percentage of the crude levy as it gradually closes the gap between them.

Prime Minister Vladimir Putin must sign off on the duties for them to come into effect.