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'Russia unlikely to make oil tax switch soon'

Russia is unlikely to switch to a profit-based oil taxation system before 2012, chief financial officer at state-controlled oil major Rosneft, Peter O'Brien, said today.

Russia's Finance Ministry said last month Russia should move to a profit-based oil tax system and abandon tax breaks for East Siberian oil fields to avoid fiscal risks.

"A profit-based tax system will create clarity for everybody," O'Brien said.

State-controlled companies like OAO Rosneft and Surgutneftegaz are benefitting from zero export duty on newly developed fields in East Siberia.

But Russian oil majors have argued for a profit-based tax.

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