Reality Check for Russian Oil

Moscow has pledged to sustain its crude oil production at high levels and increase exports. However, the economic model of the Russian oil sector still seems to remain largely export-oriented, while the government seemingly views it as a major cash-cow.

The authorities have increased the oil sector's financial burden. On November 27, Prime Minister, Vladimir Putin, signed a decree to increase export tariffs levied on crude oil and oil products. According to the decree, effective from December 1, the tariff levied on crude oil was raised from US$290.60 per ton up to $308.80 per ton. Also, on November 27, President Dmitry Medvedev signed into law