Best Time to Complete Tax Manoeuvre In Russia's Oil Industry

Abstract

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.