Higher Taxes for the Russian Gas Sector Remain in Force

According to the Russian edition of Forbes, the Russian Ministry of Finance decided to prolong the increased tax rate for gas companies for another year.  The oil sector is also expected to be taxed more heavily.  Although the information hasn’t been officially confirmed, it is reasonable to expect that the Russian government will do everything possible to reduce the budget deficit, and the Ministry of Finance confirmed that a certain increase in taxes in the sector is inevitable. 

The tax increase enacted in 2015 came as a surprise, but was considered to be an one-off event.  President Putin promised to leave the taxes unchanged until 2018, but the Government made an exception for “excess income caused by devaluation” and collected additional 200 billion rubles (USD 3.1 billion) from the oil companies and another 100 billion rubles (USD 1.55 billion) from Gazprom alone.

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