Ministry to assess impact of tax changes on oil industry in 2020

SOCHI, Oct 2 (PRIME) -- The Energy Ministry will evaluate the impact of tax changes on the Russian oil industry until the end of 2020, Minister Alexander Novak told reporters on Friday.

“I think that we will unlikely be able to give an evaluation from the point of view of the production amount now, and our production is even reduced artificially. Much will depend on the market situation and on condition of the economy, including the investment programs that companies will have. They are reduced because of the pandemic now, in the framework of contraction of global demand,” he said.

The ministry will do the evaluation until the end of the year, he said.

“We will have to make a deeper and more careful evaluation of our forecasts for the industry’s development taking into account changes in the tax burden and improvements in the sector’s efficiency like stimulation measures that we have in the Arctic zone and in some fields or the fields with hard-to-recover oil,” he said.

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