OREANDA-NEWS. March 18, 2010. Rosneft VP Peter O’Brien told journalists that the government was likely to retain a zero export duty rate on crude oil produced from its Vankorskoye field throughout 2010, reported the press-centre of OTKRITIE Financial Corporation.

We estimate the annual tax savings from the Vankor duty relief could amount to USD2.8bn- USD 3.3bn, assuming a USD 70/bbl price of oil.  

View: We see the news as neutral for Rosneft, as it still remains unclear when and how the Eastern Siberian export duty relief could be modified. A government working group is supposed to meet in the next few weeks to formulate a specific proposal, which would reconcile the positions of the Ministry of Finance with those of Russian oil companies.

Recommendation: We maintain our positive view and our BUY rating on Rosneft.