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Russia's new oil export tariffs will bring an additional 1.6 to 2.5 billion dollars in revenues to its treasury coffers before the end of this year
Dmitri Lukashov, an expert of the investment company Aton, has told RIA Novosti he expects the additional revenues to come to $1.6 billion by the year's end, provided that the world oil prices stay above $25 per barrel. According to his forecasts, the price of Urals crude will go down to $31 per barrel. Maxim Shein, head of the Brokerkreditservis Co. analytical department, puts the year-end price of Urals at $27-$28 per barrel. He says the higher tariffs on exported oil will bring some 2.5 billion dollars of additional revenues to Russia's coffers unless the oil price drops below $25 per barrel, which, in his view, is a highly unlikely scenario. Dmitri Mangilev, an expert with the investment company Prospekt, also believes that Russia's extra budget revenues will by the year's end amount to $2.5 billion or so, but he predicts a drop in the price of Urals crude, down to $32. The discrepancies in the projected amount of additional revenues are attributable to varying oil price forecasts. From August 1 onward, the export duty for crude oil will be 69.9 dollars per ton, $28.3 up the previous rate of $41.6 whereas that for refined products will be $45 per ton, against the previous $37.5. This is a record-high raise of Russian export tariffs (the rate was never before raised by more than $10 at a time this year), resulting from recent modifications in the export duty scale. Back in March, the Economic Development and Trade Ministry and the Ministry of Finance proposed increasing the tariff burden on the oil sector given the soaring price of oil on the world's commodity markets and the need to compensate for the losses arising from welfare tax cuts. The two ministries predict that if the oil price remains above $30 per barrel, an additional $3-plus billion will be flowing into Russia's Treasury coffers in every year. Under the old export tariff scale, oil exporters were taxed 35 percent of the difference between the actual price and $25 if the price was between $15 and $25 per barrel and 40 percent of the difference if the price was above $25. The new scale introduces the price brackets of $15-$20, $20$-25, and above $25. If the oil price exceeds $25 per barrel, the tariff rate will be 65 percent of the difference between the actual price and $25. The current rate has been calculated on the basis of the average world price of Urals crude in the past two months, which fluctuated within the range of 30 to 40 dollars per barrel. The export duty for refined products is also up. Previously, it was to account for 90 percent of the crude tariff. Now, the percentage has been lowered to 65, resulting in a merely $7.5 increase of the rate. The aim is to stabilize the oil prices on the domestic market. The Economic Development Ministry is discussing the new mechanism for setting export tariffs on refined products with government agencies and large oil producers. The minister, Herman Gref, earlier pointed out the necessity of working out "long-term rules to play by." The establishment of long-term tariffs on refined products will make it possible for companies to invest in their own refining facilities, Gref said.
Print Russia's new oil export tariffs will bring an additional 1.6 to 2.5 billion dollars in revenues to its treasury coffers before the end of this year Bookmark Russia's new oil export tariffs will bring an additional 1.6 to 2.5 billion dollars in revenues to its treasury coffers before the end of this year

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