New Russia Oil Export Duty Expected October 1, 2011

Russia is likely to introduce planned cuts in its oil export duty regime as of Oct 1, 2011 a source close to the government body responsible for the tariff told Reuters, a move it hopes will boost investment in local fields.

The source added that a final decision on the details of the duty is expected at the end of this month.

"The decree could go into force on September 1, meaning that tariff payments at the new rate will start on October 1," the source said on August 10, 2011.

Prime Minister Vladimir Putin last month pressured government officials to introduce the new so-called "60/66" export regime as soon as possible to allow domestic producers to boost investment levels.

The new tax will cut the crude export duty co-efficient in the formula used by the government to 60 from 65 and sets oil product export duties at 66 percent of the crude duty.