Oil production taxation in Russia and the impact of the tax maneuver

Vadim V. Ponkratov


The author reflects on the current taxation of oil production in Russia, the mechanisms and effects of the tax maneuvers taken in 2013-2014 in the oil industry. In the near future, members of the Customs Union will draw up a unified policy in the area of fuel and energy complex and harmonize the system of export custom duties on oil and petrochemical products. The author formulates proposals for improving the tax system of oil production in Russia, taking into account its developmental prospects, the existing resource restrictions, as well as significance for the budget. In 2011-2014, the Russian Government paid special attention to the issue of improvement of MET, but the latest innovations entail domination of the fiscal function of this tax. The situation in the oil sector demands the opposite - there is a growing need for investments into the development of oil fields in new oil and gas provinces, and the development of transport and refinery capacities. While working out the concept of taxation of crude hydrocarbons extraction, the following approaches should be used: taxation of end results of companies’ performance; stimulation of the rational use of natural resources and the fullest extraction of the main and associated components; economic and budgetary efficiency; simplicity of administration. Suggestions are made about how to improvet the Russian system of taxation of extraction of crude hydrocarbons with regard to such taxes as MET, income tax, export duty, and royalties.


taxation of crude hydrocarbon extraction; mineral extraction tax; custom duty; tax maneuver; harmonization of taxation within the Customs Union

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DOI: https://doi.org/10.15826/jtr.2015.1.1.007

Copyright (c) 2015 Vadim V. Ponkratov

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