Russia Upstream Fiscal and Regulatory Report
The recent changes in the taxation of Russia’s oil and gas sector reflect both the country’s pivot eastward and the special treatment afforded to its state-controlled energy companies. The so-called ‘tax manoeuvre’ shifts the tax burden from export duty on oil and petroleum products to Mineral Extraction Tax (MET) on oil production. It will gradually reduce Russia’s marginal rate of export duty to 30% in 2017, while increasing the base rate of MET to RUB919/tonne. The primary motive for this is to harmonise Russian export duty with that existing in other Eurasian Economic Union countries, particularly Kazakhstan and Belarus, in preparation for the development of a common energy market between 2018 and 2025. While the simultaneous MET hike and duty reduction means that the change is relatively neutral for oil exporters, profit margins in the refining sector are likely to be hit.
Russia Upstream Fiscal and Regulatory Report provides an overview of the regimes governing upstream oil and gas operations
The report includes:
- An overview of the fiscal and regulatory regime governing upstream oil and gas operations in Russia
- Details on legal frameworks and governing bodies administering the industry
- Levels of upfront payments and taxation applicable to oil and gas production
- An explanation of the latest Mineral Extraction Tax (MET) and export duty provisions, along with their evolution over time
- Detailed information on the terms of production sharing agreements for Sakhalin and Kharyaga
- An assessment of the current fiscal regime’s attractiveness to investors against regional peers
Get hands-on information on the future outlook of fiscal and regulatory terms in Russia.