Russian Ministry of Finance offers oil companies to share gains from ruble devaluation

Oil companies may face change in tax rules: the Ministry of Finance sent presentation with parameters of the draft law on added revenue tax (ART) to Ministries and companies.

The Ministry of Energy has proposed to reduce the tax burden on mature fields with the help of tax on financial result (NFR); the bill has already been submitted to the State Duma. The Ministry of Finance considers that this is another targeted benefit, and give incentives to oil companies, which were affected by the crisis less than others, is the madness, and offered not to hurry to introduce ART for all deposits.

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The Ministry of Energy supports NFR - a tax on the difference between income from oil sale and the cost of its production and transportation, capital costs are written off rapidly (additionally 40% in four years). The rate is 60%. First, it will be introduced at 16 pilot fields. The proposed parameters of NFR are only for already mature projects, and for the high-cost ones, it is not appropriate for the industry - and therefore the Ministry of Finance considers it targeted benefits.