I think a metamorphisis in Russia is taking place. Concern is building up abt our oil dependency on the Mideast, and a powerful antiterrorism alliance is developing between Russia and the West. Curbing terrorism is a vital common interest. In turn, Russia needs both our markets and our money for investment and they are beginning to stabilize their privatization process and limiting their oligarchs. Indeed, an article in today's NY Times said how Putin got one of the transportation oligarchs to disappear. Having said that, I feel their are many opportunities in Russia for very significant gains. Even if oil drops, which it is, the PE of almost all the oil companies is ridiculously low.
09:21
[Tuesday 6th November, 2001]
Russia mulls cutting crude export tariff
MOSCOW - Russia's government may cut its export tariff on crude oil in
2002 due to falling world prices, Andrei Kushnirenko, the secretary for the
government commission for protective measures in foreign trade said on
Monday.
"Prices are falling, so we will have to cut the rate of the tariff in order to keep
it within the range set by the law," Kushnirenko told Reuters, adding that the
commission plans to examine the issue in the end of this week or next week.
Crude oil is liable to a tariff of 23.4 euros ($21.01) per tonne, which will be
in effect until the end of the year.
Currently, the government sets the tariff in euros per tonne every two
months, pegging it to the price of the Russian Urals blend.
The current tariff band list, in effect since August 1, 2000 ranges from zero
when the Urals price is below $15, to a maximum of 48 euros when the
Urals price rises above $32.50. The tariff is adjusted according to
euro-dollar rate.
But the new law on the customs tariffs, which will come into effect from
January 1, sets maximum crude tariff rates in percent of its customs value,
depending on the Urals price.
With the Urals barrel price below $15, no tariff will be collected. A tariff of
35 percent will be set at the Urals price of $15-25 and a 40 percent tariff
with the price above $25.
Urals was traded at $18.70/$18.72 per barrel in Rotterdam and at
$18.27/$18.29 in the Mediterranean at around 1400 GMT. /Reuters/ |
