Global Trade Alert

Decree No. 251 of 30 March 2016 of the Government of the Russian Federation decreases the incremental coefficient in the initially introduced in 2013 methodology for calculation of the export customs duties on certain types of crude oil.
Concretely, it reduces the incremental coefficient k from k=42% to k=36% (previously, k was fixed at 42% for all calendar months that precede the period 1 January 2016-31 December 2016 inclusive) in the following formula, introduced by Decree No. 276 of the Government of the Russian Federation of 29 March 2013:

P = (URALS-182.5)*k - 56.57 - URALS *0.14 > = 0
where:
 

• P -- the rate of export customs duty on crude oil, classified under codes 2709 00 900 1, 2709 00 900 3 of the Common Customs Tariff ('CCT') of the Eurasian Economic Union ('EEU'), except for crude oil extracted in oil fields specified in note 8 of the CCT of EEU, approved by Decision No. 54 of 16 July 2012 of the Board of the EEU.

• URALS -- the average price of crude oil 'Urals' on the world markets of crude oil (Mediterranean and Rotterdam) for the monitoring period. For monititoring purposes, the Russian Government uses the provided by Argus Media Ltd prices of "Urals" quoted in USD per tonne.

Decree No. 276 clarifies that if the value of P is negative, then P is substituted by zero.

Decree No. 251 enters into force on 1 June 2016.