Helping aid: Russia cuts Siberian export tax to boost output
East Siberia oil gets tax holiday
The Kremlin has cut Russia's oil export duty to zero - though only for nine months - for 13 huge oilfields in Eastern Siberia in a bid to help crisis-stricken oil companies and boost crude production.
In April Russia brokered a deal to ship 2.4 billion barrels (300 million tonnes) of oil over 20 years to China by a pipeline starting from 2012.
East Siberia's fields - which hold massive reserves - will be used to meet most of Russia's commitments to energy-hungry China, a Reuters report said.
In a statement released on its website, the Russian government said the zero rate will come into force within the next two months and last for nine months.
"Everyone is happy, no one is hurt," a source at a major Russian oil producer told the news agency.
The zero export duty will apply to output from Rosneft's Vankor field, which is due to come on stream later this year, the Surgutneftegaz-operated Talakan field and to TNK-BP's Verkhnechonsk field, Reuters said.
The move was first put forward at an industry meeting in February.
"I think it's just a test for now. [The] Vankor oilfield is yet to be launched, and now the oil from East Siberia is mainly being delivered to the local market. We believe the effect could be material if the decree is extended beyond nine months," Pavel Sorokin from UniCredit Securities told the news agency.
Every month the government sets oil and oil products duties, which are based on a monitoring of international prices for Russia's mainstay Urals crude blend.
Russia will raise its oil export duty by 4.4% to $222 per tonne from 1 August.