Moscow Weighs How to Protect Refiners From Tax Changes

摘要

Russia’s government is in a whirlwind of activity as it seeks to fine-tune changes in tax policy for the oil in- dustry that have been under discus- sion for years but finally received im- petus after the recent inauguration of President Vladimir Putin and the ap- pointment of a new cabinet of minis- ters. A surge in domestic fuel prices, triggered by oil markets and a weaker ruble, has forced Moscow to take emergency measures and rethink long-term plans (NC Jun.14’18). Broadly, the government wants to raise budget revenues, ensure price stability on the domestic motor fuel market and protect vulnerable refin- eries from insolvency. Officials refer to it as “wrapping up the tax maneu- ver,” a fiscal reform effort in the in- dustry that began in 2015 but stalled due to low oil prices.