WWW.DISSERS.RU


...
    !

Pages:     | 1 |   ...   | 4 | 5 || 7 | 8 |   ...   | 16 |

RUSSIAN ECONOMY IN trends and outlooks Source: calculated on the data of Federal service of state statistics.

Fig. 2. Average Prices of Export of Oil and Fuel Oil in 20002009 (USD/t) Source: calculated on the data of Federal service of state statistics.

Fig. 3. Export of Oil and Oil Products in Physical and Value Terms in 2000-2009 (mln t, USD mln) Under the impact of the rise of world prices for crude oil and natural gas, the share of fuel and energy commodities in Russias export in 2008 accounted to 68.6%, of which crude oil represented 34.4% (Table 15). In 2009 the share of fuel and energy commodities in Russias Section The Real Sector export somewhat declined, however remained high as before (66.7% of which crude oil 33.7%).

3.4.4. Dynamics of Prices for Energy Commodities on Domestic Market In 2008 in response to the growth of world oil prices notable increase in prices for oil and oil products on the domestic market was observed. In summer 2008 producers prices on oil, gasoline, diesel oil and fuel oil reached record high values for the entire after-reform period.

In July 2008 average domestic price for oil (producers price) in dollar terms reached 410.USD/t, and average price of gasoline 810.3 USD/t. In September-December 2008 in response to a decline in world oil prices and the devaluation of the ruble exchange rate, a slump in domestic prices for oil and oil products (producers price) in dollar terms was observed.

However, in 2009 in response to the rise of world oil prices, they greatly resurged and exceeded the level of the end of 2008. (Table 16, Fig. 4,5). At the same time, domestic prices for oil in Russia as before remain notably lower than the world oil price level. Price gap between world and domestic oil prices is due to the export customs duty and additional transportation costs of export. Oil price on the domestic free market (markets segment where oil is sold not by transfer prices) during recent years actually is formed on the basis of its free market price with the deduction of export customs duty and export costs.

Table Domestic Prices for Oil, Oil Products and Natural Gas in USD Terms in 20002009 (average producers prices, USD/t) 2000 2001 2002 2003 2004 December December December December December December Crude oil 54.9 49.9 60.7 70.1 123.5 167.Gasoline 199.3 151.5 168.8 236.9 333.1 318.Diesel oil 185.0 158.5 153.8 214.3 364.3 417.Fuel oil 79.7 47.1 66.1 66.0 69.4 142.Gas, USD/thousand cubic 3.1 4.8 5.9 4.4 10.5 11.meters 2006 2007 2007 Decem- 2008 2008 December June ber June July December Crude oil 168.4 230.3 288.2 360.4 410.2 114.Gasoline 416.5 491.7 581.2 763.6 810.3 305.Diesel oil 426.1 442.0 692.5 850.7 902.8 346.Fuel oil 148.8 181.6 276.5 337.2 392.8 125.Gas, USD/thousand cubic 14.4 15.6 17.6 20.0 23.8 18.meters 2009 2009 2009 2009 2009 January March June September October December Crude oil 62.2 122.9 194.7 225.9 219.5 219.Gasoline 244.3 318.8 481.5 593.2 576.2 457.Diesel oil 306.2 343.1 382.1 388.2 380.6 394.Fuel oil 107.2 145.9 210.8 265.8 257.6 250.Gas, USD/thousand cubic 17.9 16.meters Source: calculated on the data provided by the Federal service of state statistics.

So far domestic prices for gas remain under the government control. In the coming years gradual rise of domestic prices for gas to the level which ensures profitability of its marketing on domestic and on external markets has been envisaged. Price gap between the world and domestic prices for gas in this case will reduce; however, domestic prices for gas will remain below the world level (the difference is equal to export customs duty and transportation costs for export).

RUSSIAN ECONOMY IN trends and outlooks Source: calculated on the data provided by the Federal service of state statistics.

Fig. 4. Average Producers Prices for Crude Oil and Natural Gas in USD Terms in 20002009 (USD/t left scale, USD/thousand cubic meters- right scale) Source: calculated on the data of Federal service of state statistics.

Fig. 5. Average Producers Prices for Gasoline and Fuel Oil in USD Terms in 20002009 (USD/t) Section The Real Sector 3.4.5. Features of Tax Regulation in Oil and Gas Sector in the Wake of the Crisis Some amendments to the RF Tax Code came into effect in 2009. They were directed at the reduction in tax burden on the oil sector and stimulation of crude production. Tax system based on the unified specific oil extraction tax which was effective since 2002 did not take into consideration real differences which existed in the conditions of oil extraction due to mining-and-geological features of oil deposits, their location, as well as the stage of their production. As a result, the oil extraction economic effectiveness deteriorated regarding the highcost deposits, termination of production ahead of schedule. At the same time, commissioning of the new high-cost oilfields was getting more difficult. It was especially true of undeveloped regions with lacking infrastructure.

Drawbacks inherent to the unified rate for oil extraction tax have determined the search for scenarios with different tax rates depending on mining-and-geological conditions which specify real conditions for oil extraction. The tax system was amended with new elements since 2007:

1. Rate-reducing coefficient for depleted deposits at over 80% has been introduced. Coefficient is calculated on the basis of the formula and changes from 1 (under depletion at 0.8) to 0.3 (under depletion at 1 and more) 2. For the new oil deposits of the Eastern Siberia oil and gas province on the territory of the Republic of Sakha (Yakutia), Irkutsk oblast and Krasnoyarsk Krai tax holidays for the oil extraction tax have been applied. For this type of oil deposits zero oil extraction tax rate has been fixed before oil extraction volume reaches the volume of 25 mln t at the subsoil block on condition that the development timeline does not exceed 10 years or during 10 years in case of licenses for the right to use subsurface mineral resources both for geological study (prospecting and exploration) and production from the date of state registration of the license.

3. Zero oil extraction tax rate has been determined for deposits with super heavy crude oil.

Adopted amendments were aimed at stimulating development of depleted and new oil deposits. Differentiation of oil extraction tax with the account of the level of depleted resources allows extending development timeline of depleted deposits and ensures additional revenues both from oil extraction tax (levied at the reduced rate) and from other types of taxes (profit tax, export duties, etc.). Reduction in the rate for the oil extraction tax in case of new oil deposits in the Eastern Siberia oil and gas province has allowed stimulating the development of the deposits of this region.

At the same time, adopted amendments envisaged that the benefits with respect to oil extraction tax for the new and depleted oil deposits can be obtained solely in case of application of the direct metering method (accounting) of the oil production volume at the subsoil block.

In case of the depleted deposits this provision notably restricted the sphere of application of tax benefits due to the fact that there is no direct metering of oil production on the majority of these oilfields (license blocks). As a result, application of this benefit has a very limited character, i.e. the task of stimulating and extending the development of depleted deposits has found a very limited solution.

Adopted amendments have not found a full solution for the tax stimulation of the development of new high-cost deposits which do not belong to Eastern Siberia oil and gas province, i.e. located in other regions and on the continental shelf. In the majority of cases the new Russian oil deposits are characterized by negative mining-and-geological and geographic parameters. Their development requires higher capital investment, maintenance and transporta RUSSIAN ECONOMY IN trends and outlooks tion costs. At the same time, current tax system failed to ensure necessary reduction in tax burden for the development of such deposits which held back investments in the new projects.

Commissioning of the new high-cost oil deposits especially in the undeveloped regions with undeveloped or lacking infrastructure required improvement of the current tax system, and the implementation of special tax policy ensuring required incentives for the investment into oil production.

In 2008 in order to stabilize oil production amendments into the RF Tax Code were developed and adopted. These amendments were aimed at the reduction of tax burden on the oil sector, stimulation of enhanced development of operating deposits and development of the new ones in undeveloped regions and on the continental shelf. These amendments entered into force from 1 January 2009. From the point of view of impact on the oil production economic effectiveness the following ones are the most important:

1. Depletion coefficient formula which reflects dynamics of the world oil prices and is applied to the base rate of the oil extraction tax, the exemption minimum has been raised from 9 USD/bbl to 15 USD/bbl (Table 17). Such modification of the depletion coefficient formula has resulted in a sizable reduction in the oil extraction tax rate. In the heat of 2009 reduction in the oil extraction tax rate by means of formula modification constituted about 12%. This reduction in the uniform oil extraction tax rate cuts tax burden on the oil sector and allows oil companies to get more revenues, increases investment yield from the development of new deposits, stimulate more enhanced development of depleted deposits.

Table Oil Extraction Tax Rate in 20022002 2003 2004 2005 2006 2007 2008 Basic rate of oil extraction tax The formula Rb/t 340 340 347 419 419 419 419 Coefficient of world price dynam- ics () (-8)/252 (-9)/261 (-15)/Note. average for the tax period price level for Urals in USD/bbl; average for the tax period USD exchange rate to the Ruble determined by the Central Bank of the Russian Federation.

Source: RF Tax Code, Federal law 151-FZ of 27 July 2006, Federal law 33-FZ f 07 May 2004, Federal law 126-FZ of 08 August 2001.

2. Requirement to apply direct metering method for oil production on specific subsoil block has been removed in case of set oil extraction tax benefits on deposits with high depletion level and on the deposits located in Eastern Siberia oil and gas province (within borders of the Republic of Sakha (Yakutia), Irkutsk oblast and Krasnoyarsky Krai. Applicability of existing benefits regarding oil extraction tax, first of all rate-reducing coefficient for depleted deposits, were significanty restricted by the requirement to use the direct metering method for extracted volume of oil. Due to the fact that implementation of technical undertakings to secure direct metering method of oil extraction on the depleted deposits in the majority of cases was economically inefficient, this did not allow applying existing tax benefits and led to untimely closure of production and subsequent loss of crude Application of benefits for oil extraction tax on the basis of current metering system of oil production for separate subsoil blocks allows spreading these benefits to all depleted oil deposits which will ensure extension of their production period, supplementary oil extraction and extra tax receipts.

This also allows securing application of oil extraction tax benefit (tax holidays) for the new small fields located in the Eastern Siberia oil and gas province and other regions entitled to Section The Real Sector the benefits. Implementation of direct metering of oil production on such oil fields is economically inefficient and in the event of the absence of such oil extraction tax benefit they will remain untouched.

At the same time, it should be noted that where the current metering method of oil production is implemented, oil companies tend to maximize the volume of produced crude oil by means of manipulation (distorting accounting) when distributing the volume of produced oil across separate license blocks. In this connection, government authorities face a daunting task to establish rigorous control over reliability of such data 3. For the fields located in Nenetz autonomous okrug (north of Timano-Pechora oil and gas province) and the Yamal peninsula in Yamalo-Nenetz autonomous okrug, zero oil extraction tax rate is fixed for the production period up to the accumulated volume of oil extraction reaches 15 mln t on the subsoil block or for the time interval of 7 years for the licenses for the right to use the subsoil resources for the purposes of exploration and production or for the period of 12 years in case of the licenses for the right to use natural resources simultaneously for geological prospecting (study and exploration) and production of natural resources staring from the date of state registration of corresponding license. For the subsoil blocks located there, licenses for the right to use subsurface mineral resources were issued prior to 1 January 2009 and the level of depletion does not exceed 0.05 zero oil extraction tax rate is effective up to the moment when accumulated volume of oil extraction reaches 15 mln t or during 7 years starting with 1 January 2009.

4. For the RF continental shelf oil fields located to the north of the Northern Pole zero oil extraction tax rate has been determined for the period up to the moment when accumulated volume of oil extraction reaches 35 mln t or for the time interval of 10 or 15 years starting with the date of state registration of the license depending on the type of the license for the right to use subsurface mineral resources. For the subsoil blocks located there, licenses for the right to use subsurface mineral resources were issued prior to 1 January 2009 and the level of depletion does not exceed 0.05 zero oil extraction tax rate is effective up to the moment when accumulated volume of oil extraction reaches 35 mln t or during 10 years starting with January 2009.

Pages:     | 1 |   ...   | 4 | 5 || 7 | 8 |   ...   | 16 |



2011 www.dissers.ru -

, .
, , , , 1-2 .