OREANDA-NEWS. January 28, 2010. The following are takeaways from our analysts’ discussion with Rosneft’s investor relations department:

Rosneft sees no essential changes in key politicians’ views on the export duty exemption. The negative position of the Finance Ministry is neither new nor reflective of the prevailing sentiment, reported the press-centre of OTKRITIE Financial Corporation.

Vankor crude should be formally subject to the export duty exemption from 19 January 2010, although due to a technicality (an incorrect customs code for crude stipulated in the relevant government decree), this should be re-affirmed in the next few days. Draft amendments to the decree have already received the necessary preliminary approvals. The amendments should permit the retroactive application of the export duty exemption for the Vankor field from 19 January 2010.

Rosneft has made pre-payments for crude export duties (required under Tax Code) for the month of January, taking into account that the export duty exemption is in place for Vankor from 19 January 2010.

The company still works under the assumption that the duty exemption will last for several years.

View: We maintain our positive view on Rosneft, and believe that chances are high that the export duty exemption will remain for some time, despite market concerns that it could be abolished in a few months.

Action and Recommendation: We maintain our BUY rating on Rosneft with a target price of US10.77/share.