Russia May Raise Oil Export Tax in May to Highest Since 2008

Russia may increase its export duty on most crude shipments by 7.1 percent on May 1 to the highest level since the 2008 financial crisis.

The standard duty will probably rise to $453.70 a metric ton ($61.90 a barrel) from $423.70 a ton in April, according to Bloomberg calculations based on Finance Ministry data. That would be the second-highest amount levied on producers after a record $495.90 a ton in August and September 2008.

Brent and Urals, Russia's benchmark export blend, climbed above $100 a barrel in February as unrest in northern Africa and the Middle East disrupted some oil flows. Russia sets its export duties based on the average Urals price from the 15th day of one month to the 14th day of the next. Urals averaged $114.47 during the most recent monitoring period, Alexander Sakovich, a Finance Ministry adviser, said by phone.

The discounted rate on oil pumped via Russia's East Siberian-Pacific Ocean pipeline to Asia and from the Caspian Sea may climb to $211.70 a ton from $191.

OAO Rosneft's Vankor field will lose discounts and have to pay full taxes according to the Finance Ministry's draft of May duties, Sakovich said. Prime Minister Vladimir Putin must sign the draft for the rates to come into effect.

TNK-BP's Verkhnechonsk deposit and OAO Surgutneftegas's Talakan project maintain tax breaks in the draft, Sakovich said.

The export tax on light oil products may be increased to $304 a ton from $283.90 a ton. The duty on heavy products may rise to $211.80 a ton from $197.90 a ton.

The duty on liquefied petroleum gases including propane and butane may increase to $130.20 a ton from $91 a ton in April.