Russian oil companies almost double dividend payments, says ministry report

Interfax reported March 24 that Russian oil companies will “nearly double dividend payments from $3.5 billion in 2002 to $5.6 billion in 2003,” attributing the information to a Russian Finance Ministry report for the country’s Cabinet on ways to improve tax legislation.

The ministry estimates oil company revenues grew 30 percent to $71.8 billion, including growth of 40 percent to $40.7 billion from crude oil exports and 12.4 percent to $14.5 billion from oil product exports, Interfax said.

According to the report, eight companies produced 80 percent of Russia’s oil. Those companies are Lukoil, Yukos, Surgutneftegaz, TNK-BP, Sibneft, Tatneft, Rosneft and Slavneft.

The Finance Ministry is proposing a new scale for oil export duties and to raise VAT in order to extract $2 billion more in taxes from the oil industry, Interfax said, noting that the amount is based on the assumption that oil prices will hold at more than $27 a barrel.