MOSCOW - RUSSIA'S government decided on Saturday to cut oil export duties aimed at helping the country's oil producers cope with declining prices, Interfax news agency reported.

Prime Minister Vladimir Putin approved a decision to reduce customs duty on the export of crude oil to US$287 (S$425.61) per tonne from US$372 per tonne at the start of November.

The cut, favoured by the finance ministry, was brought forward by one month in response to the global financial crisis.

Vedomosti daily said on Saturday the government considering lowering the duty to US$195 dollars per tonne instead, as promoted by the economic development ministry - a difference that would have cost Moscow's state coffers US$2 billion per month.

Mr Putin also ordered proposals for a new formula for crude oil export tariffs, based on market prices, by the beginning of December. -- AFP