Russia looks to streamline oil taxation

The Kremlin has made a surprise move to reform its complex system

Russia is planning a sweeping overhaul of oil taxation as it looks to replenish its coffers and simplify a system that has grown increasingly complex and difficult to navigate over the years. While the net impact to producers from these changes is negative, some will lose out more than others. The Duma, the lower house of Russia’s parliament, approved at a first reading draft this week oil tax legislation submitted by the finance ministry. It will require two more readings, likely undergoing revision in the process. The proposals are part of a larger tax package prepared by the government. The plan, as it stands, is to do away with mineral extraction tax breaks for mature oilfields and those