Russian Taxes

The Russian tax system includes federal, regional and local taxes. For an oil company, the most significant taxes include value added tax, production tax, export duty and profit tax.

Profit tax
The statutory profit tax rate for Russian companies is 20%.

Value-added tax
Value-added tax (VAT) of 18% is imposed on Russian domestic sales of oil and oil products.

Production tax
Since January 1, 2009, production tax (PT) is calculated using the formula: PT=419 x K, where:
419 production tax rate RUR per ton
K (P-15) x FX/261
P has an average monthly Urals price USD/bbl
FX has a RUR/USD exchange rate.

Exceptions:
0% rate applies to high viscosity oil (above 200mPa*sec) - about 50% WSR's oil in Tatarstan

0% rate applies to the Kolvinskoye field and North Kharyaga field as they are less than 5% depleted and located in Timano-Pechora region till first 15 MM tones (110 MM bbl) are produced per field or 7 years since production start are over (the earlier of the two conditions).

Export duty
Export duty is calculated as follows whereby the officially stated average price/barrel of Urals Blend export oil is:

- export duty is 0
- >USD 15 and export duty is a maximum of 35% of the surplus over and above USD 15/bbl
- >USD 20 and export duty is a maximum of USD 1.75/bbl + 45% of the surplus over and above USD20/bbl
- >USD 25 => export duty is maximum USD 4/bbl + 65% of the surplus over and above USD25/bbl

Export duty oil products
Light oil products – 70% of crude oil export duty
Dark oil products 38% of crude oil export duty

Excise
Applies to the following oil products in the domestic market oil:

Petroleum AI 80 – 2,657 RR per tonne
Petroleum AI 82, 92, 95, 98 – 3,629 RR per tonne
Diesel summer, winter, arctic – 1,080 RR per tonne