ANNOUNCEMENT 23 Jul 2013In July 2013, the government of the Russian Federation announced changed incentives for foreign investors entering the country.
NUMBER OF INTERVENTIONS
Rosneft to Send $60 Billion Worth of Oil to China
On 23 July 2013 the Russian President, Mr Vladimir Putin, signed Federal Law 213-FZ On Amendments to Chapters 25 and 26 of Part Two of the Tax Code and Article 31 of the Law on Customs Duties.
The federal law aims to encourage the initiation of new investment projects targeting the development of fields containing hard to access oil. For example, the oil extraction fields in the Arctic shelf correspond to this legal formulation.
The law defines coefficients that decrease tax rates on extraction of sub-soil resources and sets scales of oil recovery difficulty and degree of exhaustion of particular fields. The law also defines the methodology for calculation and application of these coefficients. In addition, the government preserves its right to calculate the rates of customs export duties applied to oil with particular characteristics, produced at particular fields.
As of the moment, the Russian Government has granted rights to Exxon Mobil, Eni of Italy and the Norwegian oil company Statoil to drill in the Kara Sea. The New York Times of 20 June 2013 reports that Rosneft (the Russian state oil company) has been also negotiating with Chinese companies to establish joint ventures to drill in the Russian sector of the Arctic Ocean.