PRESS: Econ min supports Rosneft's idea to cut Transneft tariff

MOSCOW, Jul 17 (PRIME) -- The Economic Development Ministry was the only authority to have supported the idea of oil major Rosneft's CEO Igor Sechin to cut oil and oil product pumping tariffs of oil pipeline monopoly Transneft, business daily Kommersant reported on Friday, citing a letter of Minister Maxim Reshetnikov.

According to the letter to the head of the Federal Antimonopoly Service Igor Artemyev, Transneft’s net profit margin is large enough to reduce the tariffs. The margin can rise to 25% in 2024 from 22.6% in 2019. The tariffs can be cut to reduce the margin to 5% by 2025.

Aide to Transneft CEO Igor Dyomin said that the ministry calculated the margin for the entire business, not only the oil and oil product pumping, where it is about 10%. The reduction of margin would prevent the company from breaking even in new infrastructure projects in 15–20 years.

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