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.
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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