Russia May Raise Oil Export Duty of 8pct in May

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

According to Bloomberg calculations based on Finance Ministry data, the standard tax rate will probably be in the range of USD 453.40 per ton to USD 456 per ton up from USD 423.70 per ton in April. The discounted rate on oil pumped via Russia East Siberian Pacific Ocean pipeline to Asia and from the Caspian Sea may reach USD 211.60 to USD 213.30 a ton from USD 191.

Mr Alexander Sakovich a Finance Ministry adviser said 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 benchmark export blend will probably average USD 114.42 to USD 114.95 during this monitoring period.

Brent and Urals, Russia benchmark export blend have traded at an average above USD 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 USD 303.80 to USD 305.50 a ton from USD 283.90. The duty on heavy products may be within USD 211.70 to USD 212.90 a ton compared with USD 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.