Teksler: Russia will have to make difficult decisions if oil prices fall to $20

Teksler: Russia will have to make difficult decisions if oil prices fall to $20


When the price of oil 20 dollars per barrel, tax revenues will drop so that may have to take drastic decisions, said Deputy energy Minister Alexei Teksler.

MOSCOW, 28 Jan. If the price of oil falls to $ 20 a barrel, Russia will have to make difficult budget decisions, said Deputy energy Minister Alexei Teksler.

“At 20 dollars per barrels of revenue (tax from the oil and gas industry — ed.) to the budget will be reduced so that, I think, can take some individual decisions, and they can be difficult to budget. We certainly hope that this will not happen,” said Teksler on the air of RBC-TV.

“Our production costs are 3-6 dollars per barrel, and if you take the cost of transportation, drilling to about 15-16 dollars per barrel. In principle, the company will bear 20 per barrel in the current moment, but stop to think about investments, about the future,” added the first Deputy Minister.

Arguing about tax revenues at different oil prices, Teksler said that if the price of oil in 50 dollars for barrel the Russian budget receives per barrel of oil produced in form of taxes 30-31 dollars, but at 30 $ 12-13 dollars. “And at 20 dollars for barrel the budget will be to withdraw to an average of 4 dollars,” he added.