Abstract:

The results of Russian public policy in oil industry taxation are examined and serious challenges are identified: although the reforms have positive macroeconomic effect on Federal Budget revenues, growth in extraction and primary distillation, some problems still require the solution – oil industry tax burden increases, results of oil extraction at fields with high capital expenditures decrease. Today the Russian Government is put in a dilemma either strengthen long-term sustainability by implementation of strategic tax maneuver – the introduction of Excess profit tax (successfully applied abroad) and create conditions for industry development or pursue a goal of short-term filling of the Budget because of difficult economic period for Russia. Strategic tasks and the main focus of further tax regime reforming for improving the sustainability of the Russian economy are emphasized in the paper.