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Best Time to Complete Tax Manoeuvre in Russia’s Oil Industry

Andrey Kaukin – Head of Department for System Analysis of Sectoral Markets, Institute of Industry and Markets Infrastructures, Russian Presidential Academy of National Economy and Public Administration; Head of Sectoral Markets and Infrastructure Department of the Gaidar Institute, Candidate of Economic Sciences. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Eugenia Miller – Research fellow of the Department for System Analysis of Sectoral Markets, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Some positive results have been achieved since a tax reform was kicked off in the Russian oil sector late in 2014. The 2014–2017 period saw an increase in the average depth of oil refining in Russia. Despite ongoing disputes, now is a good time to complete the so-called “tax manoeuvre” and to create effective incentives for Russian oil refineries to enhance their operative efficiency. The key risk here lies in specific parameters of the reform, particularly in the amount, period and distribution mechanism of oil refineries subsidization.

Key words: oil industry, tax maneuver, severance tax, export duties.