The Ministry of Finance of Russia estimated budget expenditures on the oil industry

The Russian Ministry of Finance reported that two thirds of all investment tax benefits in the country are directed to the oil industry. Of the 10 trillion rubles of budget tax expenditures, about 3 trillion are investment benefits, of which 2 trillion are in the oil and gas sector.

Denis Borisov, Director of the Department of Analysis of Preferential tax regimes at the Ministry of Finance, noted that in order to maintain oil production under OPEC+ restrictions, it is necessary to ensure “sufficient economy” in the industry. He stressed the importance of a balanced approach between the revenues of subsoil users and the interests of the state.

The Ministry of Finance continues to work with the Ministry of Energy and other departments to stimulate sectoral development in a budget deficit, while taking into account the need to increase the oil recovery coefficient and the rate of selection. Special attention is paid to the experiment on hard-to-recover reserves and the search for technological solutions for the effective use of such resources.

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