RSS 19 april 2019

There are perfectly reasonable grounds for the annual pilot period for the use of the additional revenue tax

"The oil and gas industry surely deserves support given the task the president set for it to achieve 25% investment rate by 2024 because unlike many other industries in oil and gas we already know what projects can be implemented and who and how is going to be investing in them," the Analytical Center expert Alexander Kurdin said speaking at the national Oil and Natural Gas Forum in Moscow.

Some state support may be provided to those projects that can take off if given some encouragement but that cannot be implemented without such support, he pointed out. Encouragement in this context means the application of the extra revenue tax.

"Hitting the right projects with the fiscal incentives is like trying to run a thread through the eye of the needle. It's not really that hard but few people pull it off on the first try. So the annual pilot period for the use of the extra revenue tax makes a lot of sense in this context," he is sure.

Mr. Kurdin believes there are good reasons for the rise in demand for investments and in his view it is a result of more complex production conditions and the need to set off the restrictions on capital investments brought about by the crisis.

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15 april 2019
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Public Sector in the Russian Economy
March 2019