According to a Reuters report Russia's Finance Ministry has cut back its proposals for hikes in excise duties on tobacco and alcohol, citing producers' concerns and beneficial oil prices.

The ministry is now suggesting raising excise duties on tobacco by 40 to 42 per cent in 2012, down from its initial call for a 60 per cent increase, said Reuters, quoting sources at the ministry.

Tobacco duties currently stand at 360 roubles  for 1,000 cigarettes.