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Gazprom Neft CEO hopes oil sector players not hit with higher tax burden after adjustment

Russia adjusted the rebalancing payment mechanism after September 1 and fuel rebalancing payments made to oil producers were slashed by 50%

MOSCOW, October 13. /TASS/. Gazprom Neft expects the tax burden of players in Russia’s oil industry will not rise after rebalancing payments are adjusted, CEO Alexander Dyukov told reporters on the sidelines of the Russian Energy Week forum.

"I have no such information. Let’s hope the tax burden will remain stable," the oil executive said, answering a question about a potential change in tax rates driven by the reactivation of the rebalancing payments scheme in effect before September 1.

Russia adjusted the rebalancing payment mechanism after September 1 and fuel rebalancing payments made to oil producers were actually slashed by 50%. However, the government then decided to amend the Tax Code on October 6, thereby returning the fuel rebalancing payment amount to its original full amount starting from October 1. This will make it possible to increase compensation paid to refineries for shortfalls in revenues when selling engine fuel in the domestic market.

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