Alexander Novak Reported Russia Transferred More Than Half of Its Oil Production to AIT
As the Deputy Prime Minister noted, the transfer of fields producing viscous and super-viscous oil to the 3rd group of AIT will additionally ensure an increase in the level of oil extraction in the country to 50 million tons by 2035
Russian oil workers transferred 52% or about 250 million tons of total oil production in Russia to the tax on additional income from the production of hydrocarbons (AIT). Russian Deputy Prime Minister Alexander Novak wrote about this in an article for the Energy Policy magazine.
“Since 2019, the share of production based on additional production has increased from 9% to 52%, or about 250 million tons of total oil production in Russia,” he wrote.
Novak added that the transfer of fields with the production of viscous and super-viscous oil to the 3rd group of ADD will additionally ensure an increase in the level of oil extraction in the country to 50 million tons by 2035.
The Deputy Prime Minister recalled that the AIT was introduced in 2018 – a fundamentally new tax regime for the Russian oil industry. It takes into account the real cost of field development and is more economically fair and universal.
“The transition to extra-taxable production has already made it possible to stabilize oil production in fields with a high degree of depletion,” Novak added.
