Russian tax hikes to ease budget pressure
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In late 2016 President Putin signed several tax code amendments into law. As a result, Russian oil and gas production taxes increased for 2017-2019. This move will help reduce Russia’s federal budget deficit. We estimate Gazprom’s profitability will be affected more than profitability of the largest oil companies. Further upstream tax changes are considered in Russia but a clear strategy is yet to emerge.
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