Russian government might allocate $5.14 bln to support oil companies

The Russian government is discussing the possibility of introducing a refundable excise tax on oil with an increasing coefficient for oil plants located far from export markets - in the Volga region, the Urals and Siberia. For these purposes, it is planned to allocate $5.14 bln.

Refundable excise duty is expected to compensate the factories for the absence of subsidies for a tax maneuver - increasing the mineral extraction tax and reducing export duties. The increasing coefficient will replace the customs subsidy, offsetting the transportation costs of factories located far from the borders.

Head of Rosneft Igor Sechin said earlier that the company was working with the government on tax incentives for the Russian oil industry. He talked about the need to find solutions that would promote development of oil refining and oil and gas chemistry in the face of rising global oil prices and the budget receiving additional revenues.