Russia to cut oil export duty to support markets

Russia said on Thursday it will slash oil export duty to allow oil firms hit by a weaker crude price to save $5.5 billion and give a boost to their floundering stocks.

Russian markets have gone into a tailspin this week together with other emerging markets, prompting bourses to cease trading and authorities to pump billions of dollars into the banking system.
Russian oil firms have been selling oil at a loss in the past week as export duties, which are set with a two months lag, have been based on record high June global prices, which have slumped nearly 40 percent since then.

Finance Minister Alexei Kudrin said the government will reduce the oil export duty by 23 percent to $372 per tonne from October 1, down from the previously-announced $485.5 per tonne.

“This measure will allow oil companies to redirect funds toward covering liquidity shortages,” Kudrin said.

Guardian