Tax proposals of the Russian Energy Ministry are not included in anti-crisis plan of the Government

The Ministry of Economy hasn’t included proposals of the Ministry of Energy on tax reform in the oil sector in the draft anti-crisis plan of the Government. Instead, the oil companies will receive the opportunity to buy tax breaks for oil fields, which should immediately increase the budget revenues. According to analysts, in the current situation breaks for the oil companies are unlikely, on the contrary, we should be afraid of the growth of the tax burden.

The Ministry of Economy included promoting tax returns at depleted oil fields through the sale of concessions in the draft anti-crisis plan, submitted for the approval to the Prime Minister Dmitry Medvedev. This, as the document states, "will provide an opportunity to develop the field with profitable investments and will maintain a stable tax regime in the oil industry". The idea is that the oil companies will be able to buy from the Government preferential treatment for fields, on which tax incentives don’t apply now: the budget will receive the money immediately, and the companies may obtain additional benefits in the long term. However, the Kommersant’s interlocutors in the oil companies reacted to the proposal without enthusiasm: the high volatility of oil prices and the ruble exchange rate makes the purchase of the benefits too risky.