Putin decided to meet with the heads of major oil companies

The President of Russia Vladimir Putin on March 1 to meet with leaders of the largest oil companies in Russia, “Vedomosti” with reference to own sources: Federal officials and invited to a meeting. That the Kremlin is preparing for this meeting, the publication said the President’s press Secretary Dmitry Peskov, however, he refused to give her date.

An unnamed Federal official told the publication that the specific agenda of the meeting no, this is because, according to him, not meeting. “Probably will discuss the situation on the world oil market, how can companies adapt to lower prices will definitely rise the topic of taxation for the industry,” according to him the newspaper.

In addition, the source said that some concrete decisions at the meeting will not be accepted. According to him, during the event will not be accepted any decisions on changing the tax regime for the oil industry because he was not invited representatives of the Ministry of Finance. Another source told the publication that the President may discuss with industry leaders the issues relating to the freezing of oil production, which has also previously held talks with OPEC.

Earlier, the Finance Ministry has advocated an increase in the tax burden on the oil industry. The head of Department Anton Siluanov, said that at current oil prices the system of oil industry taxation works in favour for the oilers, and not the budget. “When we met, there is a deduction of $15 per barrel, which was formed as a cost in the extraction of a barrel of oil. It was formed in conditions of high oil prices. “Now the costs are much lower, in half, to $7.5 per barrel. Because the ruble price has not changed, and the dollar has diminished,” he said.

According to the Ministry, due to the fall in oil prices oil and gas revenues of the Russian budget in January 2016 has dropped by almost a third compared with January 2015, and the export duties on hydrocarbons brought the Treasury less than half (49%) than a year ago.

February 16, representatives of the ministries of energy of Russia, Qatar, Saudi Arabia and Venezuela have agreed on the possibility to freeze oil production at the level of 11 January. In the energy Ministry then said that the countries involved in the negotiations, willing to freeze production if other manufacturers will do the same.