The Government supports foreign investment in the oil and gas industry

The Government supports foreign investment in the oil and gas industry

The main industries also generating the highest revenue to the Russian economy are agriculture and gas and oil. While in agriculture, Russia is one of the greatest wheat producers in the world, in the gas and oil sectors, it comes second after Saudi Arabia, according to a report issued earlier in July. Our lawyers in Russia can assist foreign investors who want to open companies in these industries.

Russia produces 10.1 million oil barrels per day in June

Saudi Arabia is the first oil and gas producer in the world, however this summer Russia narrowed the gap in terms of oil production nearly catching up to Saudi Arabia. According to the latest report issued by Rosstat, the Russian national statistical office, Russia produces 10.1 million oil barrels per day, while Saudi Arabia accounted for 10.3 million barrels. This report showed data last registered at the end of June, 2016. Since the beginning of year Russia has also recorded a boost in its oil exports, as year-on-year analysis shows an increase of 6% between June 2015 and June 2016. Oil exports accounted for 25.4% in the total export volumes, and also 43.2% in the total fuel and energy commodities exports. Considering the oil export price per ton has also increased by 6.8% at the middle of the year, Russia is bound to increase its revenue from exports even more by the end of the year. Statistics show that most crude oil extracted from the Urals now accounts for 4.1% of the global market.

The Government supports foreign investment in the oil and gas industry

At the moment, Russian companies are dominating the oil and gas industry, especially when it comes to extraction, as the legislation on foreign investments was quite strict for this field. However, the Government is now seeking to attract foreign players interested in this industry. In order to do this, the first measure that was introduced was a series of tax breaks. State-owned companies have also started signing memoranda of understanding and various agreements with international companies which should render their first results over the next 3 to 5 years.


08/30/2016
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