Oil & Gas 360 Publishers Note: Other news coming out of Russia validate the need for additional revenue to support the federal programs that are in financial distress.

MOSCOW: The Russian finance ministry has presented the government with plans to raise an additional 143.4 billion roubles ($1.94 billion) from oil production over the next two years, a document on a government website showed on Monday.

On Monday the Kommersant daily citing unnamed sources reported that the figure could potentially rise to 200 billion roubles within next three years as the ministry wants to replenish the state budget, hurt by low prices of oil, its main source of revenue.

It said Gazprom Neft and Rosneft would be hardest hit by the hike.

The website which the government uses to announce regulation initiatives said the ministry has proposed tweaking the Tax Code and the profit-based tax, which was tentatively implemented for oil production last year.

The changes would generate additional revenue of 87.8 billion roubles in 2021 and 55.6 billion roubles in 2022, it said.

Alexei Sazanov –

“We deem the potential changes to the regulatory regime as negative for the industry’s fundamentals,” VTB Capital analysts said in a note.

Deputy finance minister Alexei Sazanov told Reuters in June that low oil prices alone would wipe 2 trillion roubles from the Russian budget this year.

He has also said that the budget lost out 213 billion roubles last year due to introduction of the profit-based tax, which replaced the mineral extraction tax, for oil output at some fields.

Sazanov said it was not the right time to apply the levy, meant to support oil production, widely.

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