Russia: Oil producers to face additional taxes

The RF Ministry of Finance is preparing to take hundreds of billions of roubles in additional tax from them.

This year the RF Ministry of Finance for the first time officially announced what most oil companies had feared - after a sharp drop in budget revenues the Ministry proposes to adjust the formula for the tax on the extraction of oil. This adjustment, according to "the Kommersant", could cost the industry 650 billion roubles of additional taxes per year with crude oil at $ 50 per barrel, and if the price is $ 30 the load will rise by almost 1 trillion roubles. The interlocutors of "the Kommersant" in the oil companies warn that the tax increase would lead to a drop in oil production.