Russia Upstream Fiscal and Regulatory Report - Temporary Tax Changes Implemented to Raise Government Revenue and Steps Taken Towards Major Tax Changes In the Future

Russia Upstream Fiscal and Regulatory Report - Temporary Tax Changes Implemented to Raise Government Revenue and Steps Taken Towards Major Tax Changes In the Future


“Russia Upstream Fiscal and Regulatory Report - Temporary Tax Changes Implemented to Raise Government Revenue and Steps Taken Towards Major Tax Changes In the Future”, presents the essential information relating to the terms which govern investment into Russia’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Russia’s upstream oil and gas investment climate.


  • Overview of current fiscal terms governing upstream oil and gas operations in Russia
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Russia
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Russia’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making

1. Table of Contents
1.1. List of Tables
1.2. List of Figures
2. Regime Overview
3. State Take Assessment
4. Key Fiscal Terms - Royalty and Tax
4.1. Royalties, Bonuses and Fees
4.1.1. Signature Bonus
4.1.2. Annual Rental Fee
4.2. Mineral Extraction Tax
4.2.1. Crude Oil
4.2.2. Condensate
4.2.3. Natural Gas
4.2.4. New Offshore Field Incentives
4.2.5. Mineral Extraction Tax Holidays
4.2.6. Special Deduction for Bashkortostan and Tatarstan
4.3. Export Duty
4.3.1. Crude Oil
4.3.2. Natural Gas and LNG
4.3.3. Liquefied Petroleum Gas
4.3.4. Export Duty Exemptions
4.4. Direct Taxation
4.4.1. Corporate Income Tax
4.4.2. Deductions and Depreciation
4.4.3. Withholding Tax
4.5. Indirect Taxation
4.5.1. Value Added Tax
4.5.2. Import Duties
4.5.3. Property Tax
4.5.4. Land Tax
4.5.5. Excessive Flaring Fee
5. Key Fiscal Terms - Production Sharing Agreement
5.1. Royalties, Bonuses and Fees
5.1.1. Royalty
5.1.2. Bonuses and Other Fees
5.2. Cost Recovery
5.3. Profit Sharing
5.4. Taxation
5.4.1. Corporate Income Tax
5.4.2. Deductions and Depreciation
5.4.3. Value Added Tax
5.4.4. Tax Exemptions
5.5. Fiscal Stability
6. Regulation and Licensing
6.1. Legal Framework
6.1.1. Governing Law
6.1.2. Contract Type
6.1.3. Title to Hydrocarbons
6.2. Institutional Framework
6.2.1. Licensing Authority
6.2.2. Regulatory Agency
6.2.3. National Oil Company
6.3. Licensing Process
6.3.1. Auction Notice
6.3.2. Application Requirements
6.3.3. Auction Process
6.4. License Terms
6.4.1. Duration and Relinquishments
6.4.2. Work Obligation
6.4.3. Environmental Regulation
6.4.4. Local Content
6.5. Restrictions on Foreign Investment
7. Outlook
8. Appendix
8.1. Contact Us
8.2. Disclaimer
1.1 List of Tables
Table 1: Regime Overview
Table 2: Russia, Annual Rental Fees (RUB/km2)
Table 3: Russia, MET Base Rates - Crude Oil (RUB/tonne)
Table 4: Russia, Complexity Coefficient Values
Table 5: Russia, Oil MET - Periods in which KH = 0 for Specified Regions (Previously Regional Tax Holiday Periods)
Table 6: Russia, MET Rates - Condensate (RUB/tonne), 2011-June 30, 2014
Table 7: Russia, Notional Export Duty - Condensate (US$/tonne)
Table 8: Russia, Export Profitability Coefficient Values
Table 9: Russia, MET Rates - Non-Associated Gas, 2004-June 30, 2014
Table 10: Russia, New Offshore Field Incentives
Table 11: Russia, Export Duty - Crude Oil (US$/tonne)
Table 12: Russia, Marginal Export Duty Rates - Crude oil (%)
Table 13: Russia, Reduced Oil Export Duty (US$/tonne)
Table 14: Russia, Export Duty - LPG (US$/tonne)
Table 15: Russia, Export Duty Exemptions
Table 16: Russia, Corporate Income Tax Rate (%)
Table 17: Russia, Depreciable Asset Classes
Table 18: Russia, Withholding Tax Rates (%)
Table 19: Russia, Maximum Property Tax Rates (%)
Table 20: Russia, Kharyaga Royalty Rates (%)
Table 21: Russia, Sakhalin I Bonuses and Fees (US$)
Table 22: Russia, Sakhalin II Bonuses and Fees (US$), 2015
Table 23: Russia, Kharyaga Bonuses and Fees (US$)
Table 24: Russia, Profit-Sharing - Sakhalin I (%)
Table 25: Russia, Profit-Sharing, Sakhalin II (%)
Table 26: Russia, Profit-Sharing - Kharyaga (%)
1.2 List of Figures
Figure 1: Regime Flow Chart - Royalty and Tax
Figure 2: Regime Flow Chart - Production Sharing Agreement
Figure 3: Russia, Indicative NPV10/boe, IRR and State Take Comparison, Internal
Figure 4: Russia, Indicative NPV10/boe, IRR and State Take Comparison, Regional
Figure 5: Russia, Legal Framework
Figure 6: Russia, Institutional Framework

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