Russia Plans To Revamp Its Oil Tax Policy

Constrained by the OPEC+ production cuts and the necessity to balance its 2020 federal budget, Russia has started to play with one of the most dangerous policy instruments it has at hand – upstream taxation. For decades, Russian oil companies have been complaining that the constant tinkering with upstream terms is complicating their long-term strategic deliberations and unnerving potential foreign investors. This September, without the usual state media fanfare, the Russian parliament has approved the first reading of a Finance Ministry-masterminded…