New Changes and Trends in Regulation of Russian and Global Fuel and Energy Sector in July—September 2017

29 november 2017

Current issues of improving taxation of oil and gas exploration financing abroad, planned increase in the excise tax on gasoline and diesel fuel, amendments to the Budget Code of the Russian Federation regarding the use of oil and gas revenues, long-term competitive selection of the power of new generating facilities in the Republic of Crimea, the reduction of tariffs for electricity in the Far East, a new pricing model for district heating — these and other issues were addressed in the new Review on Changes and Trends in Regulation of Russian and Global Fuel and Energy Sector based on the Q3 2017 results.

Experts have analyzed the changes planned for the Russian fuel and energy sector: the new agreement on shared subsurface use, subsidizing electricity consumers of the Far Eastern Federal District, regulation of electricity tariffs in the Chukotka Autonomous District, measures to reduce atmospheric emissions, and other issues.

In the international section of the review, the authors focused on the UK and its support of unconventional gas extraction in the North Sea, Indonesia and the increasing attractiveness of its renewable energy and gas deployment, China, experiencing the growth of natural gas production and consumption, and other issues.

The review still has a special section analyzing the international sanctions against the Russian energy sector. Experts note that at the end of July 2017, the EU Associated Countries have traditionally chosen to join the decision to extend trade and investment sanctions against the Republic of Crimea and the city of Sevastopol. At the same time, the US has imposed the most severe anti-Russian sanctions yet: On August 2, the US President signed into law the Countering America’s Adversaries Through Sanctions Act, the law expanding current sanctions on Russia, Iran, and North Korea. In Russia, the energy and finance sectors have suffered most from the new sanctions.

For more details, see the Review on Changes and Trends in Regulation of Russian and Global Fuel and Energy Sector: Focus on Q3 2017

The EY Moscow Oil & Gas Center has traditionally took an active part in preparing the Review.

For other reviews see Publications.