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    Rosneft Ready to Invest $30 Bln in Russian Far East Sechin

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    Russia’s state-controlled oil giant Rosneft is ready to invest 1 trillion rubles ($30 billion) in the development of East Siberia and the Russian Far East in the next five years, Rosneft CEO Igor Sechin said Tuesday.

    YUZHNO-SAKHALINSK, July 16 (RIA Novosti) – Russia’s state-controlled oil giant Rosneft is ready to invest 1 trillion rubles ($30 billion) in the development of East Siberia and the Russian Far East in the next five years, Rosneft CEO Igor Sechin said Tuesday.

    Sechin made his statement during a visit to Rosneft’s Orlan oil platform in the Sea of Okhotsk off Sakhalin Island. Sechin was speaking in a video conference with President Vladimir Putin who was near Sakhalin monitoring military exercises.

    “In the next five years, with your [Putin’s] support, and given that the tariff policy and the tax regime stabilize, our investment in East Siberia and the Far East in a conservative scenario may total 1 trillion rubles,” Sechin said.

    Rosneft will invest 52 billion rubles ($1.6 billion) this year in developing its core activities in the Russian Far East, Sechin said, including 27 billion rubles ($830 million) in exploration and production, and 23 billion rubles ($705 million) in refining.

    Sechin called in early July for a large reduction in the tax burden on the oil industry, Vedomosti business newspaper reported.

    Sechin said in a presentation that oil companies’ tax base should be cut from 55 percent to 35 percent to stimulate new investment and generate a windfall of up to 6 trillion rubles ($180 billion) for the state budget by 2030, according to Vedomosti.

    Taxation in the Russian fuel and energy sector will be discussed at a meeting on the social and economic development of the Sakhalin Region later in the day, Putin said during a video conference.

    “As for taxation, we’ll speak about this today at a meeting on the development of the Sakhalin Region. I’m sure solutions will be found that will be acceptable for both producers, the regional budget and the central budget,” Putin said.

     

    Tags:
    Vladimir Putin, Sakhalin Region, taxation, military exercises, Russian Far East, East Siberia, Igor Sechin
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