Oil Sector: Potential for Tax Incentives
Russian Economic Developments. Moscow. 2016, No 7, pp. 29-32
4 Pages Posted: 29 Jul 2016
Date Written: July 28, 2016
The state of Russia’s oil sector is marked by a general deterioration of the oil extraction conditions owing to depletion of existing deposits in developed regions and signiﬁcantly higher extraction costs at the new oil ﬁelds and tight oil deposits. In order to improve the situation, investments in the development of new oil fields are required as well as in deepened development of existing deposits with an improved reﬁning margin.
Government ﬁscal policy should contribute to the resolution of these issues including implementation of structural reform in the tax system and introduction of special excess-proﬁt tax.
Keywords: Russian economy, oil and gas sector, taxation of oil sector, tax incentives
JEL Classification: P24, E52
Suggested Citation: Suggested Citation