Oil duty to be tied to current oil prices

Russia's Finance, Economy and Energy Ministries came up with a proposal yesterday to get the period by which oil export duties are calculated down to one month, RBC reports. The proposal was voiced yesterday by Prime Minister Vladimir Putin during his meeting with representatives of oil companies. According to the PM, the duties should reflect current prices. He stressed that the global financial crisis, instability on global markets and a fall in prices called for measures to ensure the sustained development of the oil industry. Since the current oil duty setting formula has been designed only for a predictable market situation, it naturally must be altered now that oil prices are swinging violently.