Russia may increase the tariff for shipping crude oil through the East Siberia-Pacific Ocean pipeline, or ESPO, from Aug. 1, the Interfax news agency reported Monday citing an official from the Federal Tariff Agency.

State-controlled oil pipeline operator OAO Transneft (TRNFP.RS) plans to increase tariffs in the overall pipeline system by between 3% and 3.5% from Aug. 1, and prices for shipping crude through ESPO may also be reviewed at the same time, said Denis Volkov, head of the Federal Tariff Agency's oil and gas tariff department.

The ESPO pipeline, which started operating last year, carries 300,000 barrels of crude oil from East Siberia to the Pacific Coast, from where it is shipped to Asian and U.S. markets.

Both export duty on East Siberian oil and transportation through the pipeline are subsidized by the government.

Source: Downstream Today