Russia’s Oil and Gas Sector in 2018
Russian Economy in 2018. Trends and Outlooks (Issue 40). 2019. Moscow. IEP, pp. 220-231
14 Pages Posted: 16 Sep 2019
Date Written: September 5, 2019
The oil and gas sector is among the basic ones of the Russian economy and is playing an important role in the income generation for the state budget and Russia’s trade balance. Implementation of the OPEC+ agreement regarding the production restriction has resulted in the world crude oil prices growth. In 2018, the volumes of crude oil production peaked for the entire post-Soviet period and the extraction and export of the natural gas hit all-time high. Under the first stage of tax maneuver in force in the oil industry, the refining depth and increased volumes of export of petroleum products observed before its implementation were replaced by contraction of production and export of fuel oil and by the reduction of crude oil refining and export of petroleum products. Oil refining depth moved up markedly. It was decided to gradually complete tax maneuver in the oil sector and introduce the additional profits tax (windfall tax).
Keywords: Russian economy, oil and gas sector
JEL Classification: L72, O13, O47, Q32
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