In 2016 freezing of the export oil duty creates the risk of decline of oil production in Russia by 25-30 million tons a year in the coming three years, Igor Sechin, Rosneft President, said.
On October 10, 2015 the government has introduced into the Russian parliament the draft law on freezing of reduction of export oil duty, in 2016 it is planned to remain the duty at the level of 2015 – 42%. The tax maneuver, which is effective in the oil industry since January 1, 2015, envisages growth of oil tax and reduction of export oil duty to 36% in 2016.
“During six months the oil industry has gotten a negative monetary flow and one should also bear in mind that current oil production is stable. But I would like to pay attention to the fact that these results have been achieved owing to the investments of previous years.. one, certainly, needs to support, but not remove resources from the existing investment programs,” said Rosneft President at the Investment Forum VTB Capital “Russia Calling!”
Igor Sechin also added that the situation with the investment programs is getting worse after making a decision to maintain the export duty. “If the tendency continues, in the coming three years we will have reduction of production by 25-30 million tons of oil a year,” he added.—0—
Economics
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In late February, the governments of Pakistan and Azerbaijan are expected to sign an investment agreement worth $2 billion, which will include several projects with SOCAR (State Oil Company of Azerbaijan). According to Turan, the energy cooperation projects discussed in January in Islamabad and Baku will feature in the agreement. These projects include energy efficiency initiatives, the construction of a pipeline, and SOCAR’s plans to explore the creation of underground gas storage facilities in Pakistan, as well as documents provided by the Pakistani side related to the exploration and extraction of hydrocarbons in the country.
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Azerbaijan continues to face an acute water shortage that affects both drinking and irrigation supplies, a problem that, despite frequent media attention, remains unresolved. Farmers are particularly feeling the pressure.
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BAKU, Feb 3 (Reuters) - Representatives from Azerbaijan’s State Tax Service (STS) participated in the latest session of the working group on tax, customs, and legal issues hosted by the German-Azerbaijani Chamber of Commerce.
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The Agency for the Development of Small and Medium Enterprises (KOBİA) has issued 192 start-up certificates to entrepreneurs, approximately 50% of whom are youth, according to Orkhan Mammadov, Chairman of KOBİA. The announcement was made at the Fifth Young Entrepreneurs Forum in Baku, underscoring the government's increasing focus on fostering innovation among the nation’s young entrepreneurs.
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