Turkey- Russian gov't promises no subsidies to energy firms
Date
1/25/2016 7:27:07 AM
(MENAFN- The Journal Of Turkish Weekly) TheRussiangovernment will draw up measures to ease administrative costs for energy producers hit by the fall in oil prices but will not provide financial support Energy Minister Alexander Novak said on Jan 23.
The Kremlin said Jan. 22 that it was preparing an anti-crisis plan after oil prices and the ruble-dollar exchange rate briefly hit record lows dealing a blow to an economy heavily dependent on energy exports.
Asked about possible measures for oil and gas firms Novak said “They should not be financial or fiscal but rather in the order of administrative simplication.”
“The government’s goal is to facilitate the work of the oil companies” he said. “The oil and gas sector has to increase its productivity companies have to review their investment plans.”
Referring to companies’ tax loading Novak said that “the most important thing right now is to do nothing that could have the impact of an additional charge on the sector.”
Authorities have admitted that tumbling oil prices will have to see them slash government spending as they struggle to keep the deficit to under three percent of gross domestic product (GDP). So far this year oil prices have faced a rapid descent as concerns snowballed over the strong dollar and weak demand in the faltering world economy -- particularly in Asian powerhouse China.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.