The big tax maneuver, the privatization of PJSC ANK “Bashneft”, the Germany's long-term climate strategy, the China's plans to develop renewable energy sources and other topics have been included in the review of the fuel and energy regulations in Russia and the world according to the results of the 4th quarter of 2016.
As in the previous edition, the bulk of the review is devoted to Russia. The new Russian fuel and energy regulations which the experts analyze include a planned increase in the mineral extraction tax and an export tax reduction in 2017 (big tax maneuver), an increase in the excise duties on petroleum products in 2017-2019, the construction of the Turkish Stream gas pipeline, the accession of the Crimea to the first price zone of the wholesale electricity market and other issues. Particular attention was paid to environmental issues which included the regulation of greenhouse gas emissions and associated petroleum gas utilization.
Among the planned innovations of the Russian fuel and energy sector, the experts' attention was attracted by the approval of provisional oil transportation schedules, the development of the commodity exchange, the encouragement of development of hard-to-recover reserves by creating "scientific testing sites”, the mechanism to decommission inefficient electricity generation facilities, the improvement of the price negotiation procedure (tariffs) in the heat supply sector, etc.
The global practices reviewed by the experts were the initiation of the revision of the taxation system for oil and gas production in Australia, a Germany's long-term climate strategy, plans to develop renewable energy sources in China, and an increased import duties on coal in Turkey.
The section analyzing the international sanctions against the Russian power industry remains relevant. According to experts, the expansion of anti-Russian sanctions against the fuel and energy sector mainly affected energy resource carriers in the 4th quarter of 2016.
For more details, see the review Changes and Trends in the Regulation of the Fuel and Energy Sector in Russia and the World in Q4 2016.
We remind you that the most relevant changes in the regulation of the fuel and energy sector in Russia and the world, main adopted changes in the regulation and planned reforms are analyzed quarterly in the Review. As usual, the EY Moscow Oil & Gas Centre took an active part in preparing the Review. For other reviews see Publications.