Ministry of Finance suggests not granting preferences on export duties to oil companies from 2016

​The Ministry of Finance of Russia plans to make corrections in the taxation in the oil sector. From Jan 1st 2016 it is suggested not granting new preferences on export duty.

The Ministry of Finance suggests replacing preferences by a new system of taxation and introducing the tax for added revenue. But the law hasn’t been worked out as yet and the Ministry of Finance plans to seriously work on the added revenue tax after 2016 when planning the budget for 2017-2018.

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The Ministry of Finance considers the method of granting the preferences to be ineffective as the order of approval is violated and an opportunity to manipulate the data stays.

The Ministry of Finance gives an example of the Dulisma deposit which is developed by Duliasma OC.

Initially in 2012 the company was granted a 16.3% preference to reach the stability for 12 months but despite of the negative conclusion of the Ministry of Finance, it was prolonged in 2013, and in 2014. In 2014 it was extended until 2033 by passing the set order, the Ministry of Finance states. To be granted a preference, the deposit needs to be developed by not more than 5%.