New fuel and energy regulations in Russia and worldwide in April-June 2016

8 august 2016

The new fiscal terms for oil processing and the new mechanism for depositing revenue from petroleum product excise taxes in Russia; the Strategy for the development of petrochemical industry through 2030 - implementation plan; cooperation between Russia, Vietnam and CIS countries; amendments to action plan to reduce greenhouse gas emissions. The Analytical Center has prepared another review of regulations in fuel and energy sector in Russia and around the world in Q2 2016.

In the Russian context, the experts noted changes aimed at improving safety in the coal industry, stabilized electricity rates for the population of Amur Oblast and Jewish Autonomous Oblast, increased payment discipline among electricity consumers, incentives to use peat as fuel for electricity production alongside other renewable energy sources in Russia.

Among new tendencies abroad, the specialists focused on the prospects of LNG market in Japan, adjustments to tax regime applied to projects in Mexico, introduction of stricter liability for operators of nuclear installations for the consequences of emergencies initiated in the UK, and some other issues.

The section analyzing sanctions against Russia’s energy sector that first appeared in the report last year is featured in this year’s report as well. In Q2 2016, the main event here was the official extension of restrictions for the Crimea and Sevastopol for another year and Russia’s decision to extend its food embargo until the end of 2017.

For more details, see our Review: Changes and Trends in the Regulation of Fuel and Energy Sector in Russia and the World in Q2 2016.

As usual, the EY Moscow Oil & Gas Center took an active part in preparing the Review.