central asia newswire

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FRIDAY, May 24, 2013
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Central Asia

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Russia reduces duties on oil products to Tajikistan

Tajikistan will now have to pay less for Russian petroleum products

Thursday, June 28, 2012 - Russia said on Thursday it will lower taxes by 12 percent on crude and petroleum products delivered to Tajikistan.

The export duty of one ton of Russian crude oil will drop from $419.80 to $369.30 under the new tariff regime.

The export tax on one ton of Russian gasoline, a fuel derivative of unrefined crude, outside the customs union will simultaneously be lowered from $377.80 to $332.40.

The new rates kick in on Sunday, according to the Russian government’s web site, the independent Tajik-based news agency Asia-Plus reported.

Cash-strapped Tajikistan is so heavily dependent on Russia for its crude oil and petroleum products that it has little negotiating power over duties, resulting in fluctuating street prices of everything from car fuel to foods.

Consequently, a smuggling industry has developed across the Tajik-Kyrgyz frontier where cheaper Russian gas is sold by Kyrgyz smugglers to Tajik customers at cut-rate prices.

Moscow has called on Kyrgyzstan to do more to stop the illegal reselling of fuel over the lightly guarded mountainous border.

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