The problem of an assessment and cancellation of inefficient energy subsidies is actual within optimization of budget expenditures

31 march 2015 | Kommersant

The policy of governmental subsidies to the energy industry was discussed during the round table at the Analytical Center. The direct support for the oil and gas industry in 2013 costs the budget about $15 billion, $46 billion were allocated for subsidies for fossil fuel consumption, and $280 million - for alternative energy. Experts' recommendations regarding the measurement of subsidies and policy, that accompanies the cancellation of their ineffectiveness, according to the instructions of the Government, will be transferred to the Ministry of Finance.

Alexander Kurdin
Alexander Kurdin
Department for Fuel and Energy Sector

"Kommersant" quotes Alexander Kurdin, the Head of the Department for Strategic Studies in Energy of the Analytical Center, about the urgency of the problem of assessment and cancellation of inefficient energy subsidies, especially for fossil fuels. "However, if this problem was urgent until recently only for the Government due to international commitments to the G8, G20 and APEC, it is very relevant now in the framwork of optimization of budget expenditures, says Mr. Kurdin. In addition, the reform of subsidies is expected by the Energy Strategy of the Russian Federation until 2030 and the Concept of the Social and Economic Development of the Russian Federation until 2020".

The publication writes that the interest of the Government was confirmed by the expert with the request for the Analytical Center to send to the Ministry of Finance proposals to measure the corresponding subsidies in the budget and reform policies of support of the oil and gas sector and consumers.