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.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
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 every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.