Russia's New Tax Regime to Boost Crude Exports

摘要

Russia's new oil tax regime, intended to smooth out wrinkles in the domestic sector, could have the unintended result of boosting crude exports, with uncertain consequences for global markets. Coming into effect from Oct. 1, the so-called "60-66" fiscal regime will cut crude export duties by around 7% and abolish separate rates for light and heavy products, taxing both at around 66% of the crude duty. Gasoline taxes will eventually come down to the same rate as other products with the aim of avoiding the domestic shortages seen earlier this year.