On October 21st, Russia’s State Duma approved amendments to the Russian Tax Code in the first reading. If fully approved, the new amendments will change the way the oil industry is taxed in Russia.
The tax on resources extraction will increase and duties on some oil products will reduce, which will lead to higher costs of oil supplied to Belarus and revision of excise duties on fuel. Fuel prices in Belarus might rise due to the expected rise in fuel prices in Russia. Belarus might also increase the volume of re-export schemes for Russian oil products. Russia may limit the volume of oil supply to Belarus in order to limit Russian budget losses.
