Putin’s War: Crippling Russia’s Oil Industry? A Complex Reality
Russia’s energy minister, Anton Rubtsov, has warned that heavy taxation is making oil production unprofitable, threatening the country’s vital export revenue. This comes as Russia’s oil and gas revenue plummeted by a third in May, reaching its lowest level since July 2023. The high tax burden, implemented to offset sanctions-related losses, is deterring investment and potentially impacting long-term production. Experts warn that while tax cuts could boost production, they risk widening the budget deficit, leaving the Kremlin in a difficult financial balancing act.
John Q. Hosedrinker