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Rosneft CEO Igor Sechin want a massive tax break


Rosneft CEO Igor Sechin reportedly asked President Putin for roughly 145 billion rubles ($2.6 billion) in tax breaks in order to stimulate Russian oil refining. According to the newspaper Kommersant, he made the request on February 8. Three weeks later, Russian oil companies and government officials reportedly met and failed to reach a compromise on taxation.

The Energy Ministry says no way

Russia is already changing the way it taxes oil companies, moving them from a “mineral extraction tax” to a “tax on additional income,” which will be imposed not on the volume of produced oil, but on the revenues of the sale of raw materials, minus the marginal costs of extraction and transportation.

Russia’s Finance Ministry doesn’t like the idea of a massive tax break, either. The ministry has proposed eliminating export duties, instead of targeted support for the country’s largest oil refineries.