The zero export duty rate on oil produced at 22 fields in Eastern Siberia will remain in place in April, a source familiar with discussions on this issue told Interfax.

(Kazan, March 13, Tatar-inform). The zero export duty rate on oil produced at 22 fields in Eastern Siberia will remain in place in April, a source familiar with discussions on this issue told Interfax.

"There was a proposal at the meeting [of a working group on zero export duty rates on Eastern Siberian oil on Friday] that there be zero rate in April," the source said.

No consolidated decision was made at the session, whereas the drafting of a directive setting the export duty rates on oil and oil products for the next month will begin on Monday, March 15, he said.

The Finance Ministry has proposed that the discount on duty rates on oil produced at the Vankorskoye, Talakanskoye, and Verkhnechonskoye fields be annulled, the source said. "These fields are quite profitable now, and if you do not consider capital investments made since 2003, but look only at the production volume, costs, revenues, and transportation in 2010, then you see that, if not the full rate, then 0.7-0.8 [of the basic export duty rate] of it could be imposed," the source said.

If a decision has been made to implement this proposal, this will take a significant amount of time, as the decision must be cleared with the Customs Union commission, for the zero duty rate to remain in effect all this time. "At least this will last not only until the end of April," the source said.

The zero export duty rate for 13 fields in Eastern Siberia was introduced on December 1, 2009. Since January 19, 2010, the zero rate has been extended to another 9 fields. The Customs Union commission had decided in mid-December, 2009 that the list of fields subject to a zero duty rate be expanded to 22 and that the quality of oil subject to a zero duty rate be changed. The Customs Union's zero duty rate code was applicable to this type of oil and was antedated in a government directive setting oil duty rates for January, the decision of which, was supported by Deputy Prime Minister Igor Sechin.

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