Low export duties are preferred in relations between Russia and Belarus

9 june 2014 | Rossiyskaya Gazeta

“Rossiyskaya Gazeta” published the announcement made by a representative of the Ministry of Finance of the Russian Federation regarding the agreement reached by the Ministry of Finance and Ministry of Energy, on the parameters of the tax maneuver in the oil sector. The article says that the essence of this maneuver is to reduce the budget revenues from the export of oil and oil products and compensation of budget losses by increasing taxes on oil production.

Alexander Kurdin
Alexander Kurdin
Department for Fuel and Energy Sector

The signing of the Eurasian Economic Union agreement at the end of May, implies the creation of a common oil and oil products market for Russia, Kazakhstan and Belarus. This means that by 2018 these countries should reach a common denominator for the corresponding export duties. In Kazakhstan and Belarus taxes are low but in Russia they are high, and Russia was the one that came forward with the initiative to address the needs of its partners.

“There is already a long and difficult experience in relations between Russia and Belarus regarding the split of export duties for separate oil products that are exported by Belarus but are produced from Russian oil, - explained the Head of the Department for Strategic Studies in Energy of the Analytical Center Alexander Kurdin, to the reporter from “Rossiyskaya Gazeta”. – This experience shows that if the costs to solve this issue are too high for both sides, the dispute will undergo a very long and painful process. In this regard, low export duties are preferred in relations between the two sides”.