Russia will increase oil exports and decrease its processing — Moody's

In 2017, oil companies in Russia will likely increase the export of crude oil and reduce the amount of its processing. 04.May.17 1:38 AM By Christina Orlina Photo Toinnov.com    583

The manifestation of the two mentioned tendencies will contribute to a reduction in the framework of the tax maneuver, the duty on oil exports, and weakening ruble.  Naturally, the combination of these factors make the export of crude oil a more attractive business than its shipment to the refinery. Capital expenditures of domestic companies in the manufacturing sector in 2017 is likely to remain at a minimum (with the exception of "Tatneft" and "Gazprom oil"), estimated the analysts of the rating agency. However, in the Russian market are factors that reduce the profitability of processing, particularly the increase of excise duties on petroleum products and increase in export duties on fuel oil this year. So the export of oil from Russia destined to 2017 to grow. Did not disappoint would be prey. And it will remain at a good level, Moody's experts believe . According to them, the growth of oil production in the new areas of mineral resources have helped to mitigate the production decline in depleted fields in Western Siberia. In addition, recent drilling at Mature fields have intensified, which were supported by a recovery in the mining segment. Is the only artificial constraint — the obligation of Russia to cut production of raw materials in the first half at the Vienna agreements. However, Moody's analysts regard it not as a decline but as the freezing of production. What is not so burdensome for Russian companies and does not interfere with the fulfillment of their production plans.

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