Russia is abolishing duties on oil and coke to zero from 1 January 2024, according to the Ministry of Finance. The export duty on oil will decrease by $24.7/t to $0/t, following the established calculation procedure. The reduction also applies to export duties on light and dark petroleum products and oils, including commercial gasoline, straight-run (naphtha), and coke.
As of 1 December 2023, the export duty on light petroleum products and oils was $7.4/t, on dark petroleum products it was $24.7/t, and on commercial gasoline it was $7.4/t. The duties on liquefied petroleum gas (LPG) will be $1.6/t, while pure LPG fractions will have a duty of $1.4/t, and the duty on coke will be reset to zero.
Russia, being one of the world’s largest oil producers, is expected to increase global oil supply with the reduction in export duties. This move is likely to contribute to easing the global energy crunch. Additionally, it may lead to a potential decline in oil prices, benefiting countries by reducing energy costs and supporting economic growth. However, for nations heavily dependent on oil exports, a decrease in oil prices may have some impact on their revenues.
Russia’s share in global coal exports is expanding and currently totals 16%, with demand for Russian coal twice exceeding export capacity.
In January-October 2023, coal production amounted to 360.4 mnt, while exports jumped to 181.3 mnt.
