Russia to increase oil output after tax cuts – Putin

PARIS (Reuters) – Russia, the world’s second-largest oil exporter, will raise its oil output in the next few years as new tax cuts will allow oil firms to invest more in exploration and production, Prime Minister Vladimir Putin said.

Russia imposed heavy taxes on the oil industry, stashing away the proceeds in two oil wealth funds. Oil companies have complained about the excessive tax burden, which they say has led to underinvestment and stagnation.

In its first major policy decision, Putin’s government has approved a number of tax breaks for the oil industry, including cuts in the mineral extraction tax and tax holidays for remote Siberian regions where oil is hard and costly to extract.

“We are sure, in the next few years Russia’s oil output will increase,” Putin said in an interview with French daily Le Monde attended by Reuters and released on Saturday.

Reuters