Country Report

Russian Federation upstream fiscal summary

28 January 2019

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28 January 2019

Russian Federation upstream fiscal summary

Report summary

A concession (royalty(called MET)/tax) fiscal system is the basis for nearly all upstream licences and joint ventures in Russia. Joint ventures may include Russian oil and gas companies (ROCs), and/or international oil companies (IOCs). The government participates indirectly via its ownership of Gazprom and interests in other ROCs. The Russian fiscal system has been subject to many changes since IOCs were first allowed to invest in the early 1990s and has been very complex in the past. In...

Basis
Licence terms
Government equity participation
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty (Mineral Extraction Tax (MET)
- Ring fencing
- Base
- Onshore oil MET rate
- Onshore gas and condensate MET rate
- Offshore MET rate
- Payment schedule
- Export duty
- Ring fencing
- Base
- Onshore oil and condensate ED rate
- Onshore gas ED rate
- Offshore ED rate
- Payment schedule
- Corporate income tax
- Ring fencing
- Base
- Rate
- Payment schedule
- Other taxes
- Property tax
- Additional profit tax (APT)
- Fiscal treatment of decommissioning
- Product pricing
- Liquids pricing
- Natural gas pricing
- Summary of modelled terms
Recent history of fiscal changes
Stability provisions
Split of the barrel and share of profit
Effective royalty rate and maximum government share
Progressivity
Fiscal deterrence
Investor IRR versus pre-share IRR - oil