The forecasters proceeded from a "conservative scenario," with possible price fluctuations within $8 a barrel, he added.
The current average petroleum price, through this month, is $44 a barrel. "We are proceeding from a hypothetical price reduction to forecast $35 a barrel for next year," Klepach said.
The ministry deems it necessary to reduce fiscal pressure on the petroleum sector. "It is necessary to bring taxation down," he said. The Economic Development and Trade Ministry and other federal offices have by now received orders to blueprint initiatives on how to improve the situation of the Russian petroleum complex. In particular, opportunities to reduce taxes are under consideration, though involved experts have not come to an accord on the issue for now.
"Taxes are to shrink but petroleum companies are making sufficient profits even now to increase capital investment against present-day."
A change of mineral extraction tax rates is to be determined before 2007. "A proposal has come not to tie this tax for the domestic market in with world prices," said the ministerial spokesman.
The prospective change means to boost petroleum production and export, a medium-term objective, which is essential as these are principal factors of gross domestic product growth for now. Not only petroleum taxes will shrink. Other stimuli will come in, too, to increase production, develop new oilfields, and provide new export routes, with attention to focus on the eastern and northern mainlines.
