Changing tax system challenges producers and refiners in Russia

Journal Article · Mon Mar 25 04:00:00 EST 1996 · Oil and Gas Journal

OSTI ID:211894

Khartukov, E M ^[1]

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1. World Energy Analysis and Forecasting Group, Moscow (Russian Federation)

Over the past several years, economics of the Russian oil industry has undergone considerable change reflecting the radical transformation of the country`s core industry from a wholly state-run and heftily subsidized distribution system toward a formally privatized, cash-strapped, and quasi-market entrepreneurship. All-out price liberalization, launched by the Russian government at the start of 1992, did not apply to the national oil industry. Domestic oil prices remained tangibly restrained until mid-1993 and were officially deregulated in March 1995. Consequently, rising costs diminished profit margins of Russian oil producers, whose operating costs were never as low as popularly believed. This paper reviews the tax structure of the Russian oil industry showing the effects on exports, gas prices at the pumps, and distribution prices.

• OSTI ID: 211894
• Journal Information: Oil and Gas Journal, Journal Name: Oil and Gas Journal Journal Issue: 13 Vol. 94; ISSN OIGJAV; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
ECONOMIC ANALYSIS
PETROLEUM
PETROLEUM INDUSTRY
PRICES
RUSSIAN FEDERATION
TAX LAWS