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Russia Favoring Gas Over Oil Production [ANALYSIS]

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Hira Shahnawaz Akhtar
Published on
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Russian oil and gas firms have historically focused on production of natural gas rather than crude oil because of the differential taxes applicable on the two products. As a result, gas production has made up a larger chunk of the Russian oil and gas firm’s revenues as they concentrate on more lucrative gas production.

Russia

Tax on mineral resource extraction

At the federal level, a tax on mineral resource extraction (MRET) is applied on all oil and gas companies. However, the tax for oil is set based on the world market prices and a depletion factor specific to each oil field. On the other hand,...

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Hira is a financial analyst whose expertise lies in commodity and other financial markets. Hira is currently an independent financial consultant and is working with many international firms like American Arab Solutions (AAS). She has previously served as a Senior Research Analyst at Alternate Research (Pvt.) Ltd. as the Team Leader for the International Equities Research. She has also worked as an equities analyst of Pakistani E&P stocks at Invest Capital Markets. She has experience in business development and conducting feasibility studies in commodity markets, specifically in sugar, palm oil and canola oilseeds. She has cleared all three levels of her CFA (Chartered Financial Analyst) and has an undergraduate degree in Finance.