Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Tatneft to Resume Oil Exports After Recent Cut

Volumes of oil exports by Russian oil company Tatneft are being restored to their normal level after a recent cut, Tatarstan's president Mintimer Shaimiyev said Wednesday.

He added that access to export pipelines would be maintained in the future.

"The question of access to pipelines has now been taken off the agenda," he said, adding that he had agreed on this at a meeting with Prime Minister Sergei Kiriyenko.

"All of our oil exports go toward servicing debt. Volumes of export deliveries will be restored to their full level, since they are going to pay creditors," he said.

Tatarstan is a semi-autonomous republic in Central Russia. The republic's government owns 30.34 percent of the shares in Tatneft.

In common with other Russian oil companies, Tatneft had its deliveries through the state-owned Transneft trunk pipeline system cut earlier this month because the company owed money to the federal budget.

A government decree limited exports from July 1 by companies with debts to the budget. But the decree did not apply to exports that were wholly destined for paying foreign creditors.

Shaimiyev did not say by how much Tatneft's exports had been cut but he said the company's normal exports were 700,000 tons per month or about 170,000 barrels per day.

Shaimiyev said Tatneft's debt to the federal budget stood at about 150 million rubles ($24 million), but the debt owed by budget-funded organizations to Tatneft was "significantly higher."

The State Tax Service said that on June 1, Tatneft owed 262.5 million rubles to the budget, while the Finance Ministry owed Tatneft 317.6 million rubles.

Shaimiyev said future debt questions between Tatneft and the federal budget would be settled by mutual netting off of debt.

"As far as future exports are concerned, a working group will be set up to work out mutual offsets of debt," he said.

He added that after his meeting with Kiriyenko, instructions to this effect had been given to tax and finance departments of the government.