Russian oil companies behind on their taxes

Apr 30, 1999 02:00 AM

Russian petroleum companies were 5.49 billion rubles behind with taxes for the year's first two months by March 1. Their total federal tax arrears grew by 35.9%, says a governmental document which sums up developments in oil industry for the first quarter of this year.
Tatneft paid a mere 0.2% of its dues, Sibneft 5.8%, Bashneft 14.1%, and Sidanco 14.5%. Tyumenneft (TNK) alone afforded tax payments in full.

The industry owes its dire straits to oil prices plummeting world-wide and to the many vices of Russia's taxation system, points out the document. Oil companies have to make drastic cuts on prospecting and drilling, hence a dramatic shrinkage of oil yields.
Bankruptcies are coming up apace. Proceedings were launched on eight instances last and this year. Alarming developments are reported from Sidanko and its affiliates-the Kondpetroleum, Chernogorneft, Udmurtneft and the Angarsk oil-processing plant. Petroleum companies joined hands with the federal ministries of Fuel and Energy, Economy, Finances and Taxation to improve the industry's finances with practical initiatives streamlining taxation. They are also ready with several bills.
The Cabinet is enthusiastic about many of these proposals but doubts that they will get through the State Duma, parliament's lower house, in the near future. The governmental document urges companies to improve financial monitoring and do all they can not to lag behind with taxes and extra-budgetary fund fees-otherwise, they will lose assistance from federal agencies.

Source: RIA NOVOSTI via NewsBase
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