"A swelling ocean of cheap and dirty fuel oil pouring out of Russian refineries and onto world markets tells the story of misaligned tax policies and perverse incentives that jeopardize President Vladimir Putin's campaign to modernize industry.
Despite repeated attempts to fix its tax system, export incentives that are meant to be phased out by 2015 still make it more profitable to export cheap fuel oil — the detritus of the refining process — than the crude from which it is made.
The result has been a glut of exports of the lowest-value refined oil product and very slow progress in improving Russia's creaky refining industry, which has ballooned into the world's third largest to meet domestic demand for gasoline."
'via Blog this'
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