As RUSAL and Rosneft sign an agreement, the Russian Energy Ministry plans to introduce a lube export tax.
The Rosneft deal will see the supply of petroleum coke and natural gas to RUSAL’s plants and is expected to yield 2.65m tonnes of petroleum coke and up to 12bn cubic metres of natural gas.
In an additional agreement, Rosneft will supply RUSAL with high-tech lubricants and fluids and the two comapnies will research the development of an extended range of lubricants for the aluminium industry.
Meanwhile, according to Lube Report, pressure from Lukoil, Gazprom and Tatneft has led to the Russian Energy Ministry introducing a new lube export tax code with a variable rate. Lower taxes will apply to the now lesser-used API Group I base oils, while a higher tariff will apply to hydrocracked products which create Group II and Group III base oils.
The Russian oil majors lobbied for the new variable rate system to improve export profitability, mindful that the domestic market remains dominated by imported lubes products from the likes of Shell, ExxonMobil and French major, Total.