Medvedev instructed to consider the wishes Sechin benefits for Rosneft

The government plans to agree on a bill to impose a system of taxation of extra income (TEI) in the oil sector in the next three weeks. However, as said Arkady Dvorkovich, the head of the Cabinet Dmitry Medvedev has charged to the maximum extent take into account the wishes of the head of “Rosneft” Igor Sechin on benefits for oil fields with high water cut.

“Sechin offers. There are instructions of the head of [Prime Minister Dmitry Medvedev] to consider and to the maximum extent take into account in formulating new parameters” — quoted Dvorkovich TASS. “There was a meeting, yet left some of the fork, the Chairman of the government of the Russian Federation Dmitry Medvedev has instructed them to settle permanently as soon as possible, try for three weeks approximately to do it,” — said Deputy Prime Minister.

“If we agree, then in 2018, it is obvious [to be introduced NDM]. We are talking about pilot projects,” he concluded.

Previously, the newspaper “Vedomosti” said that the reform of taxation in the Russian oil sector depend on the outcome of the dispute around Samotlor, one of the largest fields in the world, owned by Rosneft.

According to the publication, the company has opposed the Finance Ministry’s proposals on transfer of the Deposit to the taxation added tax income (JPM), albeit on special terms, and demanded the preservation of Samotlor tax on mineral extraction (met) benefits.

As told the meeting Medvedev of the oil companies and the Ministry of Finance, differences over tax reform in the oil sector persist and the transition to the PDM strongly depends on the position of “Rosneft”. According to one of interlocutors , in addition to meeting at the Prime Minister Sechin was attended by the Minister of Finance Anton Siluanov and the head of LUKOIL Vagit Alekperov. Alekperov also asked for special incentives for one of the largest fields of LUKOIL — Imilorskoe, he added .

In mid-January 2017, in the course held in Moscow Gaidar forum Finance Minister Anton Siluanov has called for the transition in the oil sector on the PDM in the next two years with the simultaneous abolition of privileges that exist at the present time.

According to the Finance Ministry, the taxation of Samotlor oil field, the mining tax at a concessional rate will cost the Treasury 60-80 billion rubles. per year. As a result, over 10 years, the budget may lose all that he had received from the recent sale of the package at 19.5% of Rosneft shares to a consortium of Glencore and QIA.

For “Rosneft” the preservation of the preferential tax treatment of Samotlor, which accounts for around 10% of its production, is extremely beneficial. According to estimates by Raiffeisenbank analyst Andrei Polishchuk, if the current price of oil and annual production of “Samotlorneftegaz” 20 million tonnes of preferential rates for mineral extraction in 50% saving of “Rosneft” in 2017 to $1.4 billion.