MOSCOW - Slashing Russia's oil export duty to zero would be premature since the plan, sought by the oil industry, does not take into account a weakening rouble, Finance Minister Alexei Kudrin said on Saturday.
Russia, the world's second-largest oil exporter, is likely to slash 38 percent from its oil export duty in January, charging $16.2 per barrel but oilmen say the move is not enough to keep on track their investment programs.
"It is too early to talk about it," Kudrin told Vesti 24 news channel, adding that a weaker currency would boost oil firms' returns. He said the proposal also did not take into account already announced tax breaks for the industry.
The rouble is down 17 percent against the dollar since July peak.
Kudrin, whose ministry sets the duty, earlier this year opposed plans to introduce new tax breaks for the oil industry but bowed to the pressure after prices for oil fell from their record levels.
First Deputy Prime Minister Igor Shuvalov said earlier this month that a zero oil export duty was under discussion in the government. Earlier tax break announcements triggered rallies in the Russian market, dominated by oil stocks.
Russia is due to revise the 2009 budget early next year with a new oil forecast of $50, down from a current level of $95. Export duties account for 19 percent of total fiscal revenues.
Russia, the world's second-largest oil exporter, is likely to slash 38 percent from its oil export duty in January, charging $16.2 per barrel but oilmen say the move is not enough to keep on track their investment programs.
"It is too early to talk about it," Kudrin told Vesti 24 news channel, adding that a weaker currency would boost oil firms' returns. He said the proposal also did not take into account already announced tax breaks for the industry.
The rouble is down 17 percent against the dollar since July peak.
Kudrin, whose ministry sets the duty, earlier this year opposed plans to introduce new tax breaks for the oil industry but bowed to the pressure after prices for oil fell from their record levels.
First Deputy Prime Minister Igor Shuvalov said earlier this month that a zero oil export duty was under discussion in the government. Earlier tax break announcements triggered rallies in the Russian market, dominated by oil stocks.
Russia is due to revise the 2009 budget early next year with a new oil forecast of $50, down from a current level of $95. Export duties account for 19 percent of total fiscal revenues.
