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Russia May Lower Oil Export Duty in October After Price of Urals Decline

Russia may cut its duty on crude exports by as much as 3 percent for regular fields and as much as 6.5 percent for deposits with a discounted rate next month after prices for its Urals blend fell.

The standard tax rate may decline to $265.30 to $267.10 a metric ton from $273.50 a ton in September, according to Bloomberg calculations based on Finance Ministry data. The discounted rate on flows through the East Siberia-Pacific Ocean pipeline may fall to $81.30 to $82.50 from $87.

Russia sets the duty based on the average Urals price from the 15th day of each month to the 14th day of the next. Urals, Russia’s benchmark export blend, may average from $74.76 to $75.14 a barrel during this monitoring period, Alexander Sakovich, an adviser at the Finance Ministry, said by phone today.

The export tax on light oil products may drop to $191 to $192.20 a ton. The duty on heavy products may decrease to $102.90 to $103.60 a ton.

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.net

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