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. Last Updated: 07/27/2016

Government Mulls Changes To Fuel-Export Tariff Rates

Russia plans to change the current crude oil and oil product export tariff rates from the second quarter of this year, but has not yet finalized them, a senior trade ministry official said Friday.

"We are working on this, we see a compromise, but no coordinated decision yet has yet been taken," said Andrei Kushnirenko, head of the tariff policy department at the ministry.

Earlier Friday Deputy Prime Minister Viktor Khristenko was quoted as saying that Russia would consider raising the export tariff on crude oil to up to 20 euros ($19.66) per metric ton from 15 euros now at a government meeting later this month.

Prime-Tass quoted Khristenko as saying that the government would also examine raising the export tariff on fuel oil to 15 to 17 euros per ton from the current 12 euros, and on gas oil to 15 to 20 euros from 10 euros now.

But Kushnirenko, who is also the secretary of the government commission for protective measures in foreign trade, said the actual rates of the tariff would depend on a number of factors.

"The question is whether we still have administrative regulation of exports after April 1. If it is preserved then the rates of the tariff will be of secondary importance," Kushnirenko said.

Russia set administrative restrictions on oil products exports, under which companies can only export a certain part of their output, last year in order to guarantee domestic supplies and extended them to the first quarter of 2000.

"The level of the rates will therefore depend on whether they will have a restrictive function, or just a fiscal function, or both," Kushnirenko said.

He said that the commission could also cut export tariff rates on some oil products.

"The demand for some oil products is seasonal and we have to look at crude oil, gas oil, fuel oil and gasoline as a complex," Kushnirenko said.