Thursday, September 1, 2016

Proposals Ministry of Finance will be deprived of fuel Russia – Russian Oil

«Oil of Russia», 01.09.16, Moscow, 09:21 The increase in the tax burden on the oil and gas the industry will reduce the volume of oil refining up to 40 million tons per year

The Ministry of Finance, as a year ago, came up with the idea to increase the tax burden on the oil industry. Office has proposed to accelerate the tax maneuver – to increase the mineral extraction tax and reduce the export duty. It’s estimated oil will reduce the volume of oil refining up to 40 million tons per year. The ministry also noted that the work on the draft budget has not been completed. design agency he headed the government until the end of September. Therefore, there is no hurry to talk about any figures.

Yesterday, Deputy Prime Minister Arkady Dvorkovich held a meeting on the issue of increasing the tax burden in the oil industry. This “News” said a source in the government, and the source, familiar with the situation. Spokesman Deputy Prime Minister did not answer the question, “Izvestia».

According to interlocutors “News” in the industry, the Ministry of Finance, as well as last year, offers to accelerate the increase in mineral extraction tax with a decrease in export duties from 42 to 30 %. And in 2018 to reduce tariffs to zero. It is worth recalling that, according to the tax maneuver, in 2016 the export duty rate was reduced from 42 to 36%. However, in the autumn of last year, on the eve of the Day of Oilmen (celebrated on the first Sunday of September), the Finance Ministry proposed to change the formula for calculating mineral extraction tax so that the tax burden on the oil industry grew by 600 billion rubles a year. Then, the oil companies have written to President Vladimir Putin a joint letter, which stated that it would lead to 100 million tonnes and threatens default of individual companies fall in production over the next three years.

As a result, the Ministry of Finance of the proposals received MET were not. However, it was decided to leave the export duty at the level of 2015 – 42%. This option was considered that if the budget of the undertaken measures will receive the first eight months of 2016 additional income amounting to 200 billion rubles, from September 1, the duty rate will be reduced, as planned, to 36%. Otherwise, the current rate of 42% will be extended, but not later than until 31 December 2016.

Now, according to “News” interlocutor, the Finance Ministry proposes to introduce new changes in the formula of the MET, as in the past year. As the source in the industry today, oil companies once again going to appeal to President Vladimir Putin for support. Currently, the company is preparing an appeal. Representatives of oil companies traditionally does not comment on such issues before a final decision. Yesterday in the “Rosneft”, “Lukoil”, “Gazprom Neft”, “Surgutneftegaz”, “Gazprom”, “Bashneft” has not responded to the “News” requests. However, as found out “Izvestiya”, they have already calculated their losses

-. Oil companies have calculated that if the Ministry of Finance proposals are accepted, it would lead to a decrease in the volume of oil refining up to 40 million tonnes per year, – said the source familiar with the situation.

Let us recall that in the year in Russia is processed 282 million tons of oil (Energy Ministry data for 2015). Thus, the losses amount to about 14%. Production of gasoline is about 40 million tons, diesel – 76 million tons

According to “Izvestia” interlocutor, the Ministry of Finance to save the processing level proposes a reverse excise

-.. It is proposed to return excise oil industry since the volume of oil that are going to be recycled. But it looks quite strange. First charge, and then return, – said the source

Yesterday, the Ministry of Finance to “Izvestia” said it is considering various proposals of different ministries, but so far none of them has been taken..

– Work on the draft budget has not been completed, the project is the Ministry of Finance will send to the government until the end of September. Speaking today about any figures and proposals prematurely, their is no ready-made, – the press-service of the Ministry of Finance. The Ministry of Energy, “Izvestia” reported that the Ministry of Finance official proposal to the Office did not receive.

According to the deputy chairman of the Committee on energy policy and energy efficiency of the Russian Union of Industrialists and Entrepreneurs (RSPP), Yuri Stankevich, the Ministry of Finance proposal becomes meaningless comment in terms of consequences for the oil industry, because the amount of the proposed exemptions once again dictated solely by the need to offset the growing budget deficit

-. no serious preliminary estimates of the impact on industrial and other companies’ developers such “initiatives” is not carried out . Opinion of the companies themselves, industry experts are not taken into account. To understand this, just look at the statements of the mining companies for the first half 2016 and the contents of their investment programs, including on long-term projects, – said Yuri Stankevich

According to him, often in preparation. making the basis of a long-known postulate of “war plan will show»

– at the same time the Ministry of Finance commitment to increase taxes on consumption, personal income tax rate is indirectly confirmed that, as a hostage to short-term solutions, department officials are aware of.: the possibility of withdrawal of additional resources from the primary industries have been exhausted – he concluded

Irina Kezik

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