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Vankor losing preferences

A long-lasting struggle between Rosneft and the finance ministry over preservation of preferences for the Vankor field is finishing in favor of the ministry. As of May 1 the oil company is not allowed to use the preferential export duties rate; it will have to transfer the record high $454.7 per ton of oil to the budget considering the current oil prices. The preferential rate for Eastern Siberian deposits will remain at $211.7 per ton.

It should be mentioned that in addition to Vankor, two other large fields will be deprived of the preferences – Verkhnechonskoe (TNK-BP) and Talakan (Surgutneftegaz). Rosneft’s logic is quite understandable – the bad news should be offset by the fact that competitors of Russia’s major state oil firm are also to sustain losses.

From the point of view of collecting budget revenues in the pre-election period to ensure uninterrupted growth in social payments to the population and state subsidies to problem enterprises, the decision to reduce taxation preferences is quite justified. However, there are questions about the logic of organizing the fiscal system in the oil and gas sector where there are no constant and stable rules for everyone but there is a set of constantly renewed decisions on certain companies and deposits. Such fiscal confusion is a doubtful advantage in terms of attracting foreign and domestic investments in the Russian fuel and energy sector.

By Stanislav Mitrakhovich, NESF leading expert


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All reports for: 2015 , 14 , 13 , 12 , 11 , 10 , 09 , 08 , 07

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