The Russian Oil & Gas Industry: Analysis raises questions about Russian tax proposal

The Russian legislature should consider changes to recently proposed tax changes designed to encourage oil and gas investment. As drafted, the new tax scheme would not produce intended results. The State Duma of the Russian Federation on June 7, 2001, approved in the first reading a package of laws related to taxation of mineral industries, including draft Chapters 26 and 27 of the Tax Code prepared by the government. Draft Chapter 26 provides that mechanisms and quantitative parameters for import and export tariffs be established by law rather than governmental decree. If it becomes law, this part of the new regime would encourage investment by providing more stability than existed befo...

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