Russian Ministries Oppose Tax Cut After Fuel Price Cap, RBC Says

Three Russian ministries oppose a cut in the export duty on diesel and fuel oil as compensation for crude producers and refiners that held down fuel prices before the March 4 presidential election, RBC Daily said.

Prime Minister Vladimir Putin’s deputy for the energy industry, Igor Sechin, ordered the Energy, Finance and Economic Development ministries to devise a method for paying back the companies, which held fuel prices little changed even as international crude prices have climbed, the Moscow newspaper said today, citing unidentified people in the ministries.

Changing the export tax would undermine the 60-66 system, introduced in October, which lowered the crude duty using a coefficient of 60 percent instead of 65 percent and unified the duty on most refined products at 66 percent of that levy, the people said, according to RBC Daily.

To contact the reporter on this story: Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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