Transneft’s oil transportation tariffs to grow by 6.75% from January 1, 2015

Transneft’s tariffs for oil transportation through main oil pipelines will increase by 6.75% on the average from January 1st, 2015. This decision was made by the Federal Tariff Service (FTS) on November 27th, 2014.

The approved tariff increase corresponds to the level that was fixed earlier in the FTS’ draft order, posted on the single portal regulation.gov.ru in September 2014.
In early November 2014, Rosneft’s head Igor Sechin appealed to the Russian President Vladimir Putin about the Transneft tariffs. Sechin stated that he considered the increase in tariffs in an easterly direction unreasonable. Sechin referred in his letter to a contract with China's CNPC on oil supply.

Under the agreement, Rosneft agreed to supply 360 million tons of oil to China. The prepayment on the contract made up $67 billion, and some money has been already received.

The formula for determining the price under this contract provides for its binding to the international prices and doesn’t imply its change in case of the tariff increase, said Sechin. According to him, the Transneft’s initiative will reduce the company’s proceeds and tax revenues to the federal budget.