Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Reduced Heavy Crude Export Levy Possible

The Finance Ministry is putting its weight behind a plan to cut the export duty for extra-heavy crude for the next 10 years to stimulate output.

The proposal to tax exports of the hard-to-extract crude at 10 percent of the standard levy, made by the Energy Ministry, could become law by July 1, Deputy Finance Minister Sergei Shatalov said by phone last week.

LUKoil, the country's second-biggest crude producer, and Tatneft would benefit most from the tax break as they seek to develop large resources of super-viscous oil "similar to Canada's oil sands," said Valery Nesterov, an analyst at Troika Dialog.

"Extra-heavy oil could eventually add 1 percent to 2 percent to their production figures and help compensate for falling output at mature fields," Nesterov said by telephone.

Prime Minister Vladimir Putin, set to return to the Kremlin as president for at least six years, has called for oil production to remain above 500 million metric tons a year, or 10 million barrels a day, for at least a decade. The government is looking to stimulate output to compensate for declines at mature fields in western Siberian. Oil and gas provided about half the state's budget revenue last year.

ExxonMobil is moving toward the conclusion of an agreement to drill in the Russian Arctic, chief executive Rex Tillerson said Saturday.

The agreement will include the right fiscal terms, Tillerson said in a speech at CERAWeek, a Houston conference held by IHS Cambridge Energy Research Associates.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more