Rosneft says oil prices won't fall dramatically
Russia's state-owned oil company Rosneft said it did not expect a dramatic fall of oil prices in the medium term, Itar-Tass reported.
Rosneft Financial Director Anton Kozhinov told the Rossiya Forum on Wednesday that a fall of world oil prices would pose a certain risk.
At the same time, Rosneft, like other companies, uses the price of oil for its calculations that is lower than that on the market.
"This factor allows us to manage the risks," he added.
According to Kozhinov, the cost of oil production is one of the factors why oil prices won't fall dramatically in the future. "It is so high that if prices fall, enterprises will not be able to maintain their production and will reduce it," the official said.
He said the Russian tax system is a natural stabilizer because budget revenues will decrease if oil prices decline. "This is why this problem is less relevant for Russia than it is for the companies operating under other tax regimes," Kozhinov said.
Turkmenistan, U.S. oil firm hold energy talks
Turkmen President Gurbanguly Berdymukhamedov met with visiting Robert Murphy, president of Midland Oil and Gas Co., and Nara Bank, the director of the U.S.-South Korean firm Seong-Hoon Hong, Turkmen TV Altyn Asyr channel reported.
In the course of the meeting, the sides explored prospects for efficient partnership in the energy sphere, in particular in developing oil and gas deposits.
The American businessman briefed the state leader on the progress of the implementation of accords reached during his previous meeting with the Turkmen president. In particular, Murphy told the Turkmen president that an international consortium had been set up that was ready to invest in future joint projects.
There was a detailed discussion on prospects for efficient partnership in this area.
Russia to see tax increases
Russia's eight-year period of tax reductions has come to an end as the country enters a three-year period of tax increases.
The Russian government in February is to consider and approve of a tax reform plan for three years to come, Sergei Shatalov, deputy finance minister, said on Tuesday.
According to the architect of the fiscal reform tax reductions will have to be terminated, as the government's social spending grew noticeably over the past few years.
The Finance Ministry suggests "pin-point changes" to the rules of paying the basic taxes for most payers.
"We see no possibility of easing the tax burden, because government spending, social spending first and foremost, grew tangibly," he said. "Nor do we see a chance of reducing taxes in the current situation, when the Russian economy is increasingly vulnerable to turmoil in the world markets."
In contrast to the previous Finance Ministry programs the new plan leaves no room for continuing the trend of easing the tax burden by 1 percentage point of the GDP a year.
"The tax policy guidelines for 2009-2011 the government will have before it when it meets in session on February 14, 2008 will put an end to the practice of reducing the tax burden on the economy that lasted during both presidencies of Vladimir Putin," the daily Kommersant reported.
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Closing oil prices, Jan. 31, 3 p.m. London
Brent crude oil: $92.30
West Texas Intermediate crude oil: $92.29
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