Sechin opposes tax manoeuvre

As the Gazeta.ru has got to know, head of Rosneft Igor Sechin wrote a letter to President Vladimir Putin, in which he reiterated the problems arising from the tax maneuver in the oil industry. The main risk is that the model of the industry will change de facto, it will be export-oriented. Because of this, fuel prices will increase on the domestic market or deficit will occur. The Ministry of Finance sharply opposed the maneuver revision.

At the end of November last year, Vladimir Putin signed a law on tax maneuver in the oil industry. The maneuver involves moving severity of the tax burden from export duties on MET. During 2015-2017, the oil export duty will be reduced 1.7 times, the duty on petroleum products 1.7-5 times,  MET for oil will increase 1.7 times, gas condensate - 6.5 times. Excise duties on oil products will gradually decrease.

Most of the oil companies categorically didn’t like the maneuver, because it leads to an increase in the tax burden. Rosneft has repeatedly stated its opposition to the adopted innovations, but its opinion wasn’t heard. The Government has agreed to leave to only tax breaks for production of difficult resources and incentives for offshore and in some regions of the country to the oil industry.