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Russia Faces Fight Over Billions in Oil Taxes on Crude Slump

A worker carries a selection of bottled oil samples on a platform leading to an oil storage tank in Nizhny Novgorod, Russia.

A worker carries a selection of bottled oil samples on a platform leading to an oil storage tank in Nizhny Novgorod, Russia.

Photographer: Andrey Rudakov/Bloomberg
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Russia, where energy production provides more than half of state revenue, is preparing for a battle with oil producers over taxing the country’s most vital industry.

Oil’s rout has made an agreement last year to cut export duties in return for higher extraction levies unworkable because the plan was based on $100 a barrel crude. Producers led by state-run OAO Rosneft have proposed changes to the tax regime, Deputy Energy Minister Kirill Molodtsov said in an interview.