Russia to Cut Oil Export Duties in East Siberia

Russia would cut oil export duties for new deposits in the East Siberia region by half, Energy Minister Alexander Novak said on Sept. 24, 2012.

Novak also told reporters after meeting Prime Minister Dmitry Medvedev an existing tax break on resource extraction in East Siberian fields would be extended to 2022. The break was first introduced in 2007 and set to end in 2017.

The new tax regimes would support the building of new oil pipelines in the region, so the normal investment cycle would be maintained, Novak said.

Meanwhile, the policy would bring in 300 billion U.S. dollars in additional revenue for the state budget by 2030, he said.

"The new decisions will involve new deposits and provide additional oil volumes, which means the receipt of extra tax revenues," Novak said.

It would also help cover the shortfall of oil output due to the depletion of West Siberian deposits, the minister said.

"The changes to the law will mean development of 5.3 billion tons of oil additionally, which is about 70 to 100 million tons a year," Novak said.