ST. PETERSBURG, June 5. /TASS/. Cancelled tax incentives for the oil industry in 2021 cost Lukoil 60 bln rubles ($827.74 mln) per year, but the company compensated for these losses by optimizing costs and reducing investments, President and CEO of Lukoil Vagit Alekperov said in an interview with TASS on the sidelines of the St. Petersburg International Economic Forum.

In the fall of 2020, the Ministry of Finance canceled tax incentives for the mineral extraction tax for certain types of oil, as well as export duty preferences for a number of projects. The new rules came into force in 2021. At the same time, Russian President Vladimir Putin instructed the government to restore some of the incentives for the production of high-viscosity oil. The Ministry of Finance is ready to offer them to oilmen from 2024.

"We have lost around 60 bln rubles per year after tax changes. We compensated for them by cutting expenses and optimizing costs. We reduced investments in super-viscous oils. That is, of course, the economic balance has been generally preserved," he said.

He noted that the dialogue with the Ministry of Finance regarding the new tax parameters continues, but did not disclose the details.

The 24th St. Petersburg International Economic Forum is being held on June 2-5. The forum’s business program will focus on the global and Russian economies, social issues, and technological development. TASS is the information partner and the official photo hosting agency of the forum.