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Russian tax hikes to ease budget pressure

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Report summary

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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