New Regulation for the Fuel and Energy Sectors in Russia and around the World in October–December 2017

22 february 2018

The new overview of the regulation in the fuel and energy sectors in Russia and around the world prepared based on data for Q4 2017 discusses the prices in the motor fuels market and the state excise policy, the licensing of energy sales, the introduction of a new tax on the additional revenue in the oil and natural gas industry, a road map to introduce the target model of the heating market, the requirements for lighting devices as well as a number of other topics.

The experts have analyzed the planned changes in the Russian fuel and energy industry, which include payment of compensation to encourage geological exploration, measures to improve the accessibility and transparency of the services offered by energy infrastructure companies, the development of the Arctic Zone by creating anchor areas, changes to the state program 'Energy Efficiency and Development of the Energy Sector' and other issues.

The review includes a fairly expansive section on the international developments. The attention of the experts was drawn to the key parameters of the taxation reform that the US is rolling out in the energy sector, the green initiatives in China, the clean growth strategy in the UK, the new energy strategy in Italy, the measures to encourage the extraction of non-conventional natural gas in Argentina, the improving carbon competitiveness of Canada as well as the measures to promote geological exploration in Kazakhstan.

Analyzing the international sanctions again the Russian energy sector, the experts note that on October 31, 2017 the US presented updated Directive 4 to US Presidential Executive Order No. 13 662, banning US residents from cooperating with Russian companies on projects to explore deep water oil deposits, oil fields in the Arctic shelf and shale deposits not just in Russia but all over the world if Russian participation in the project exceeds 33% or if a Russian company holds the majority vote in the project.­ The new restrictions apply to new projects launched after January 29, 2018.­ And on December 21, 2017 the EU approved a resolution to extend the sectorial sanctions against Russia for another six months.

For more details, see the review 'Changes and Trends in Regulation of the Fuel and Energy Sector in Russia and the World: Focus on Q4, 2017.'

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

For other editions of the Review see Publications.