OREANDA-NEWS. March 26, 2010. The interdepartmental government work group for the tax benefits on crude extracted in Eastern Siberia suggested that the zero export duty be left in force until 2010, and starting 2011, only 40% of the standard export duty be charged. The suggestion should be submitted for government approval in the near future.

This trade-off should be convenient for both oil companies, which lobbied for the prolongation of zero duties, and the Finance Ministry, which spoke against the duties with a view to replenish the federal budget. The suggestion stands a good chance to be approved and endorsed.

If the initiative is passed, oil companies operating in Eastern Siberia could lose about USD 3 billion in 2011. In particular, Rosneft could lose USD 1.5 billion, Surgutneftegaz could lose USD 400 million, and TNK-BP could incur a USD 300 million loss.