Ministry of Economic Development of the Russian Federation
Ministry of Economic Development of the Russian Federation
Mikhail Rasstrigin: sophisticated tools are needed to stimulate oil industry development
16 September 2019 13:03

Sophisticated tools are needed to stimulate oil industry development, which will create equal conditions for the investments profitability in projects with different production conditions, Mikhail Rasstrigin, Deputy Head of the Ministry of Economic Development, said at the session "The Impact of Tax Policy in the Oil Industry on Socio-Economic Development of Russia" at the Moscow Financial Forum.

“In our opinion, such a system should be based on benchmarking, which should involve the maximum number of companies. If we do not come to this, we won’t be able to build a stable system”, the Deputy Minister said.

He noted that there is no investment inflow in the industry to date, and investments in production and exploration have declined last year. “In general, profitability in production, processing and retail is unstable, and external changes in the business environment may return us to a situation where a particular segment begins to receive a margin that does not stimulate further development”, Mikhail Rasstrigin explained.

To create favorable conditions, it is necessary to guarantee the immutability of the fiscal system parameters, in particular, to resolve the issue of a temporary additional component of the mineral extraction tax, which negatively affects investor sentiment, the Deputy Minister said.

“In general, investments in the industry depend on the profitability of projects considered by oil and gas companies. However, in the current regulatory system, the profitability of these projects does not allow companies to make investment decisions”, concluded the Deputy Head of the Ministry of Economic Development.

Дата публикации: September 16, 2019
Ссылка: https://en.economy.gov.ru/material/news/mikhail_rasstrigin_sophisticated_tools_are_needed_to_stimulate_oil_industry_development.html
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