Russian crude oil producers, unhappy with newly imposed customs tariffs, are unlikely to hold back exports outside the former Soviet Union, senior oil industry officials and traders said.


LUKoil President Vagit Alekperov said the tariffs, effective from Jan. 1 under sweeping new oil export rules, would virtually eliminate profits and starve companies of funds vital for maintaining output.


"Exports will continue of course," he said. "(But) customs tariffs should stimulate production, not paralyze it."


A government resolution, replacing quotas and licenses with a tariff-based system of export regulation, set first quarter tariffs at 23 ecus ($27.60) a ton, down from 30 ecus previously. But it also abolished tariff exemptions enjoyed by several companies, including the giant LUKoil.


LUKoil produced 43.6 million tons of crude oil last year and exported 10 million outside the former Soviet Union. Total Russian output was 316 million tons with exports of 89 million.


Alekperov, who protested over the new export tariffs at a government commission meeting Tuesday, said the tariffs should be reduced to 15 ecus. He also objected to demands by the State Customs Committee for pre-payment.