Русская версия
( Translate with Google )


Main page > Products > The fuel and energy complex of Russia - Series of analytical reports > Oil Tax Policy: Squeezing Last or Chance to Restart Industry?

Oil Tax Policy: Squeezing Last or Chance to Restart Industry?

Oil Tax Policy: Squeezing Last or Chance to Restart Industry?

The government has historically viewed the oil industry as a donor to the federal budget. So a whole series of repressive decisions about oil companies were passed in autumn 2020 that were motivated by the need to collect additional revenue to the state budget. The scale of the changes was very large; in fact, a new tax regime was launched.

At the same time, the budget-drafting campaign in autumn 2021 became a stark contrast to 2020. The Finance Ministry’s focus of attention shifted to the metals and mining industry, while oil companies got a certain respite.

The question is what will be next. Now a serious discussion is under way over the idea that tax preferences must result in a rise in investment. Simultaneously, though, demand for oil is expected to decline soon, which calls into question the advisability of new capital investment. So the oil industry again finds itself at a serious crossroads.

However, the government’s next steps will to a great extent depend on an evaluation of how the newly rebuilt oil industry taxation system works now. This is actually what our report deals with, too.

The report covers in detail the following aspects:

Dynamics of the tax burden on mineral resources production

Detailed analysis of the most recent significant changes in the oil industry taxation

  • First of all the transformation of the MET relief regime and export duty benefits, including oil from new fields with special physical and technical properties

EPT as the Finance Ministry’s new favourite

  • Why the Cabinet has got to like EPT?
  • New classification of EPT groups
  • Comparison of the MET relief regime and EPT

OPEC+ deal compliance and fiscal decisions

  • New taxes and changes in the profile of oil production by companies

Adjustments to the floating excise mechanism

  • Introduction of an investment factor to the formula

Situation with heavy and extra heavy oil production

  • Fight to regain incentives and its prospects

Analysis of fields eligible for special MET deductions

  • Who has kept benefits and even got new ones
  • Why not all benefits wangled work

Medium-term tax trends and risks

  • Possibility of the introduction of carbon payments as a new tax

Contents of the report:

INTRODUCTION 3
TAX BURDEN ON AND FISCAL REGIMES FOR OIL INDUSTRY 4
Dynamics of Tax Burden on Mineral Resources Production 4
Changes in Oil Industry Taxation in 2021 and 2022 5
Adjustments to Floating Excise Mechanism 12
PRODUCTION DYNAMICS DEPENDING ON TAX REGIMES AND BENEFITSIN CONNECTION WITH LEGISLATION CHANGES. OIL COMPANIES’ PLANS 18
Changes in Oil Production Profile by Tax Regimes and Benefits 18
Cancellation of MET benefits for Depleted Fields: Losses and New Opportunities 22
North Caucasus and Sakhalin Region: Rosneft’s ‘Leftover’ Assets 25
‘Bogged Down’ in Benefits: Victims of Cancellation of Extra Heavy and Heavy Oil Incentives 25
Cancellation of Incentives and Deductions for Fields with Special Physical and Technical Properties. Will Migration to EPT Give a New Chance? 32
‘Custom’ Deductions: ‘Manual Control’ Taxation 35
MEDIUM-TERM FORECAST 39
Date of release: January 21, 2022

If you are interested to obtain please contact » Elena Kim

Other issues:
Bookmark and Share

Special report:

Nord Stream 2 and Ukraine: Costs Should Decide
Shale Revolution: Myths and Realities
Liquefied Natural Gas Outlook: Expectations and Reality

Analytical series “The Fuel and Energy Complex of Russia”:

Outlook for Russian LNG Industry
Russian Energy and West One Year after Ukraine Conflict Began: Are There Connections Still?
Green Agenda in Russia during Bitter Conflict with West
After February 2022 the agenda was radically rewritten. Western companies began leaving Russia en masse, economic relations with the West were drastically reduced, and the Russian economy began to be pushed violently from the global economic space, hemmed in by sweeping sanctions. All that was, to put it mildly, not the best background for talking about ESG. Especially because tasks of survival and stability under unprecedented pressure became the priority in the economy. In late 2022, however, attempts to reanimate the ESG agenda already became obvious. The message is put across insistently that it is important to Russia regardless of the foreign policy situation. While earlier the “green pivot” was seen as an opportunity to attract Western investors and their technological solutions to Russia, now Keynesian reliance on domestic manufacture is discussed.
Oil and Gas Sector Regulation in 2022 and Prospects for 2023
Gazprom at the Forefront of Economic and Political Battles with Europe
Gazprom is being actively thrown out of the market. Its annual supplies to Europe have shrunk from the previous 150 billion to 65 billion cubic metres of gas. European officials assure that they have already learnt how to live without Russian gas, so they will bring its purchases down to but nominal values in 2023. Their main hope is liquefied natural gas. Today the EU must make a crucial decision: whether it has passed the point of no return in gas business with Russia and whether it is certain that its economy will endure without supplies of Russian pipeline gas. Or, on the contrary, Europe will realise after all that the gas balance will not be achieved and the payment for so headlong a rush for LNG will be disproportionate. Assessment of the potential volume of LNG that will appear on the market before the end of the current decade will be the most important factor for making the decision.

All reports for: 2015 , 14 , 13 , 12 , 11 , 10 , 09 , 08 , 07
Rambler's Top100
About us | Products | Comments | Services | Books | Conferences | Our clients | Price list | Site map | Contacts
Consulting services, political risks assessment on the Fuel & Energy Industry, concern of pilitical and economic Elite within the Oil-and-Gas sector.
National Energy Security Fund © 2007
 LiveInternet