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. Last Updated: 07/27/2016

Stocks Sink on Report of Hike in Oil Duties

The MICEX tumbled 3.2 percent on Tuesday, with LUKoil and Surgutneftegaz leading the drop after the price of crude oil fell and Vedomosti reported the country may raise export taxes.

The Economic Development and Trade Ministry may receive approval to take all of the proceeds on oil exports above $27 per barrel, compared with 90 percent now, the newspaper reported, citing ministry documents and analysts. Alla Borisenkova, a spokeswoman for the ministry, did not immediately respond to a request for comment.

The MICEX fell for a second straight day, dropping 25.32 points to end at 772.14, its biggest decline in 5 1/2 months. Seventeen of the 18 listed stocks fell. Before the slide this week, the index had climbed for 11 trading sessions to a record, high bringing its gain for the year to 46 percent.

"We had an all-time high, an oil price decline and recent discussions about changes to oil taxation," said Angelika Millendorfer, who helps manage the equivalent of $2.1 billion in emerging Europe equities at Raiffeisen Capital Management in Vienna. "People may be concerned the situation with taxation may deteriorate."

The RTS index dropped 3 percent to end at 882.58, ending 12 days of gains. It has risen 25 percent so far this quarter, the best-performing index among 79 world indexes tracked by Bloomberg.

LUKoil lost 2.3 percent to fall to 1,341.36 rubles, falling for a second day after reaching a high on Sept. 2. Surgutneftegaz, Russia's fourth-largest oil company, lost 3.8 percent to end at 26.47 rubles, also declining for the second day from a record high. Crude oil fell in New York as companies including BP restored production in the Gulf of Mexico.