Russian Energy Ministry to Rescue Oil Service without Tax Breaks and Financial Support by 2018

October 25, 2013

The share of domestic oil service companies on the Russian market is to rise from 77% to 80%, experts from the Russian Federation’s trade and industry chamber hope. They have come up with a road map to support oil services. In order to achieve the goal, it is planned to draw legislation on long-term contracts with oil companies, drop advance payments and ease loan conditions.

Market participants think that these measures will only increase prices of oil companies and that oil companies should obtain legislative confirmation of the proposed measures in order to accept the road map. Experts say that it is too early to discuss implementation of the road map because “many good intentions get lost in the offices of bureaucrats”.

The Russian Federation’s Energy Ministry is going to discuss the road map as a plan to rescue Russian oil services. The document entitled “On improving the competitiveness of Russian oil services on the internal and external oil service markets” has been forwarded to the managers of Russia’s largest oil and service companies for discussion, Pravda URFO has learned.

Copyright: Pravda URFO, 2013