The Ministry of Finance will extend tax breaks for oil workers until 2032

The Ministry of Finance has prepared a bill that extends tax benefits (investment allowance to reverse excise tax) for oil workers until 2032. They want to extend support to stabilize fuel prices and support oil refining amid sanctions. Due to the continuation of these benefits, the budget will receive a shortfall of 210 billion rubles annually.

Relief will be given to companies that invest more than 50 billion rubles in oil refining from 2020 to 2026. In addition, to receive the benefit, oil workers will also have to sell gasoline and diesel at a price not exceeding the average wholesale price by 10–20%.

Before the sanctions, much of the Russian oil refining industry's refining equipment was imported, but now purchasing spare parts has become difficult and expensive at best.

The amount of benefits that oil workers will receive “is not huge by industry standards,” but should provide an incentive “to the development of certain technologies,” experts interviewed by Izvestia believe. However, in the long term, the measures proposed by the Ministry of Finance will not be enough to ensure the stability of oil refining.