The Russian government will scrap oil export quotas soon but oblige producers to supply up to 65 percent of crude oil output to domestic refineries in the first quarter of the year, Interfax said.


It quoted Deputy Foreign Economic Relations Minister Andrei Dogayev as saying a resolution, due to take effect Jan. 1, had already been "definitively agreed." Dogayev said crude oil and refined oil product exports would continue to be regulated by tariffs and other methods.


The system of "special exporters," under which all oil exports must go through a limited number of approved companies, will be maintained, he said, adding that 14 companies currently have the right to export crude oil.


Dogayev also said producers would have to deliver up to 65 percent of output to domestic refineries in the first quarter due to winter fuel demand.


The World Bank and International Monetary Fund have opposed the special exporter system and compulsory supplies to domestic consumers. The international lending agencies have linked further credits to Russia to liberalization of the oil export system.


Dogayev doubted that the lifting of oil export quotas would lead to a significant increase in exports at the expense of the domestic market.


He said exports would be limited by demand factors and the capacity of oil export pipelines.


Officials at state oil pipeline monopoly Transneft, however, have said that exports could rise by as much as 50 percent from present levels.


Last year's crude exports outside the former Soviet Union were about 80 million tons and officials say this year's figure will be more than 85 million tons.


President Boris Yeltsin issued a decree in May abolishing export quotas and licenses from July. But he postponed the move until January amid widespread concern that producers would rush to export and leave domestic enterprises without fuel.


Domestic crude oil prices are less than a third of world market levels.