Russian petroleum tax policy – Continuous maneuvering in rocky waters

Fjærtoft, Daniel; Lunden, Lars Petter

doi:10.1016/j.enpol.2015.09.042

Cited by 10 publications

(7 citation statements)

References 13 publications

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“…A key feature of Russia's oil tax regime has been its propensity to prioritise tax revenues at the expense of long-term investments in the sector. The Russian government fundamentally overhauled the oil tax at the start of Putin's first presidency [28]. Its strength was its simplicity: designed to track mainly the oil companies' output and gross revenues, the tax model left little room for tax evasiona perennial problem during the 1990s.…”

Section: An Oil Tax Regime Geared To Maximise State Revenuesmentioning

confidence: 99%

Put over a barrel? “Smart” sanctions, petroleum and statecraft in Russia

Vatansever

2020

Energy Research & Social Science

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Section: An Oil Tax Regime Geared To Maximise State Revenuesmentioning

confidence: 99%

Put over a barrel? “Smart” sanctions, petroleum and statecraft in Russia

Vatansever

2020

Energy Research & Social Science

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“…Mineral extraction tax and export duty are gross tax, which is easy to monitor and collect but insensitive to costs and quickly distort investment decisions. Export duty is easy to administer, but leads to foreign/domestic price wedges and also insensitive to costs [5]. Smith divided the tax regime into frontend loaded tax regimes and back-end loaded tax systems [7].…”

Section: Current Petroleum Tax Regime In Russiamentioning

confidence: 99%

“…From January 1st of 2019, export duty is gradually transferred to MET, which is the so called "tax maneuver". As shown in equations (5) and 7, it moves equivalent tax rate from export duty to MET, and the export duty will be reduced to zero by 2024. C adj in equation 5is the gradually ascending transferring percentage from export duty, which is 16.7% in 2019.…”

Section: Transferring Export Duty To Metmentioning

confidence: 99%

“…Alexeev and Conrad analyzed government took under the tax policy of Russia in 2008 and compared with tax regime in other countries such as Australia and Canada [4]. Fjaertoft and Lunden analyzed the policy of "tax maneuver" introduced in 2014 with real world field study, and concluded that it is poorly evaluated in terms of simplicity, flexibility, stability, and competitiveness [5]. Filimonova et al conducted cluster analysis on tax burden of Mineral Extraction Tax (MET) and export duty from 2010 to 2017 and proposed suggestions for petroleum tax reform in Russia [6].…”

Section: Introductionmentioning

confidence: 99%

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Reform and amendment of Russian petroleum fiscal term: trends and implication to asset acquisition

Zhang

Yin

et al. 2020

Oil Gas Sci. Technol. – Rev. IFP Energies nouvelles

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This article analyzes reform and amendment of petroleum tax policy in Russia to investigate instability of tax regime which is one of the main concerns for decision making in asset acquisition. Historical and recent amendments of upstream fiscal terms in Russia are reviewed and studied in an attempt to understand the trends of reform. Tax burden of four different cases is modeled with the change of tax policy to analyze the effect of tax incentives. The recent “tax maneuver” of transferring export duty to Mineral Extraction Tax (MET) is studied in detail to analyze effects to upstream, refinery, and customers. Net present values of three field cases under previous tax regime and new Added Income Tax (AIT) regime are comparatively studied with cashflow modeling. The article concludes that recent “tax maneuver” has indirect influence on upstream sector but may lead to upward pressure on retail. New AIT regime introduces a universal taxation system and requires less government intervention, which may reduce aboveground risk of unstable fiscal regime and boost international investment in Russia. Also, key suggestions are summarized for international investors who are interested in oil and gas asset in Russia.

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“…The resultant system is highly complex, and it is difficult for an investor to predict the tax rate for a given project (Fjaertoft and Lunden, 2015).…”

Section: Taxationmentioning

confidence: 99%

Does Russian unconventional oil have a future?

Kryukov

Moe

2018

Energy Policy

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Russia is estimated to hold the world's largest technically recoverable shale-oil resources. The conventional oil resource base is still very large, but there are doubts about how much is economically recoverable. Increasing attention is given to unconventional oil. The purpose of the article is to assess whether fundamental conditions for sustainable, profitable production of unconventional oil are in place. Compared to the successful development of unconventional oil in the USA, Russia has several disadvantages. The Russian oil sector is dominated by big companies without the flexibility in methods and decision-making required in very heterogeneous unconventional projects. Infrastructure is less accessible in Russia than in most American projects. On a more fundamental level the relatively poor condition of geological data collections is a serious cost increasing factor, and the system for development and dispersion of new technologies has critical shortcomings. Russia lacks appreciation of risk taking and a corresponding regulatory framework, as well as relevant financial mechanisms. Nevertheless, government documents almost exclusively focus on technology as such as well as on taxation and tax benefits as preconditions for successful development. Without addressing the fundamental institutional problems, the potential for exploiting the resources base will be limited.

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Russian petroleum tax policy – Continuous maneuvering in rocky waters

Cited by 10 publications

References 13 publications

Put over a barrel? “Smart” sanctions, petroleum and statecraft in Russia

Put over a barrel? “Smart” sanctions, petroleum and statecraft in Russia

Reform and amendment of Russian petroleum fiscal term: trends and implication to asset acquisition

Does Russian unconventional oil have a future?

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