OREANDA-NEWS. March 16, 2010. The government intends to retain the zero export duty rate for Eastern Siberian oil and gas fields in April 2009. The decision means that 100% of the Vankor production of Rosneft will be free from export duties for at least another month, reported the press-centre of OTKRITIE Financial Corporation.

An unnamed source in the government quoted by Interfax suggested that it may take an extra couple of months for a working group to agree on a proposal and get it approved. The source reiterated that one of the proposals aimed at reconciling the positions of oil companies and the Ministry of Finance assumes that the affected companies might be required to pay a proportion of the normal export duty rate in the future, while the tax break would stay in place for some time.

View: We believe the news is marginally positive for Rosneft, TNK-BP and Surgutneftegaz. Chances remain high, in our opinion, that the government will retain export duty relief for Eastern Siberian fields in one form or another in the medium run.