Oil companies ready to save on expenditure but it won’t solve the problems in the sector

​Taxation in the oil and gas sector stays one of the main economic issues. The Ministry of Finance suggested changing the rouble’s rate in the formula of MET collection from oil companies which is bring about 600 bln roubles to the budget only in 2016. After long discussions at the highest level this idea was put aside. However, it is evident that the Government doesn’t turn away from its ideas, even calling oil companies blackmailers and advising them to save on expenditure.

Frankly speaking, expenditure can easily be found in the expense accounts of the budget but it is easier to change a few figures in the formula. The Ministry of Finance wants to collect 200 bln roubles from oil companies, another 100 bln from Gazprom, 30 bln by means of the rise of excise duty for furnace and low-viscous oil. It is not that pleasant as fights with budget funds receivers who are used to comfortable life on the account of redistribution of oil and gas rental payments in their favor.

However, the position of oil companies is not blackmail. The sector badly needs investment now as the main oil is extracted at old Soviet deposit still. The sector has kept repeating for a decade already that without the investment into new projects, the extraction at the current level can’t be held. However, a strict fiscal policy has long been applied to the sector the main goal of which is to increase the collection from the companies to the budget.