Interfax quoted a source familiar with discussions on this issue said the zero export duty rate on oil produced at 22 fields in Eastern Siberia will remain in place in April.

The source said "There was a proposal at the meeting of a working group on zero export duty rates on Eastern Siberian oil on Friday that there be zero rates in April. He said that No consolidated decision was made at the session, whereas the drafting of a directive setting the export duty rates on oil and oil products for the next month will begin on Monday March 15th.

The source said the Finance Ministry has proposed that the discount on duty rates on oil produced at the Vankorskoye, Talakanskoye, and Verkhnechonskoye fields be annulled. The source said "These fields are quite profitable now, and if you do not consider capital investments made since 2003, but look only at the production volume, costs, revenues, and transportation in 2010, then you see that, if not the full rate, then 0.7-0.8 of it could be imposed."

If a decision has been made to implement this proposal, this will take a significant amount of time, as the decision must be cleared with the Customs Union commission, for the zero duty rates to remain in effect all this time. The source said "At least this will last not only until the end of April."

The zero export duty rates for 13 fields in Eastern Siberia were introduced on December 1st 2009. Since January 19th 2010, the zero rates have been extended to another 9 fields. The Customs Union commission had decided in mid-December 2009 that the list of fields subject to a zero duty rate be expanded to 22 and that the quality of oil subject to a zero duty rate be changed. The Customs Union's zero duty rate code was applicable to this type of oil and was antedated in a government directive setting oil duty rates for January, the decision of which was supported by Deputy Prime Minister Mr Igor Sechin.

(Sourced from Interfax)