MOSCOW, Dec 7 (PRIME) -- The chances of a significant hike of taxes for Russian oil and gas companies have reduced based on preliminary parameters of the Russian federal budget for 2017 and OPEC’s agreement to reduce oil production, Fitch Ratings said Wednesday.
Taxes remain a key factor in the profitability of Russian oil and gas producers and major changes would be a significant threat to their credit quality, the agency said.
The 2017 budget assumes relatively stable proceeds from oil firms. An increase in the mineral extraction tax will be offset by a reduction of the oil export duty to 30% from 42%. As a result, tax payments by integrated oil companies should remain at the 2016 level, Fitch said.
“In the longer term, there is a risk the state may attempt to increase its share of oil and gas revenues at some point. This risk would rise significantly if oil falls below U.S. $40 per barrel for a protracted period, as this is the level the state budget is based on. But the OPEC decision to cut production in 2017 makes this scenario much less likely,” Fitch said.
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