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· Less is known about ivi, with fewer details of the IPO having emerged and fewer indications as to the company’s plans. But this is clearly a good time to move. Throughout the pandemic, both online retail and online cinema have been on the up. Russia is Europe’s biggest market for internet users, with approximately 100 million people online and the e-commerce market grew by 23 percent last year to $31 billion, analytical agency Data Insight reported. That’s comparable with India (population: 1.3 billion) and only slightly less than Canada, according to WSJ.
Any IPO is an event in itself, but this one confirms that Ozon is not about to merge with either of its biggest potential rivals — Sberbank or Yandex. Instead, by opting for a stock market launch, Ozon is ensuring that — for the foreseeable future — the competition for a share of Russia’s booming online market is going to be more than just a straight fight between those two.
2.3 The Finance Ministry's tax changes cleared all three readings by Russian lawmakers largely unchanged
Russia approved an overhaul of oil taxation at the start of October, in a bid to replenish budget funds that have been drained by lower oil prices and an increase in spending to support the economy amid the coronavirus (COVID-19) crisis.
The changes, proposed by the Finance Ministry (MinFin), not only aim to bring in an extra RUB340bn ($4.3bn) annually in revenue; they also seek to streamline Russia’s overly complicated oil taxation system. As with any significant reform in taxation, there are winners and losers among Russia's producers.
Russia’s oil taxation system has grown ever more complex over the years, with around 60% of the country's oil production subject to various different forms of tax exemption. The MinFin wants to create a more level playing field, where tax breaks are dealt out under a single system.
Under a new bill that has been cleared by the State Duma, mineral extraction tax (MET) breaks for mature oilfields that produce highly viscous crude will be done away with. Export duty exemptions at certain Caspian, Eastern Siberian and Arctic fields will also be removed.
To make up for the loss of this support, affected fields are to be brought under an excess profit tax (EPT) regime. The EPT regime was launched last year but will be reformed, as the MinFin claims its introduction has led to billions of dollars in lost tax receipts. Tweaks to the system will include a limit on the carryover of historic project losses and a lower cap on costs that can be deducted from fields’ tax bases.
Lawmakers at the State Duma approved the bill in its first reading on September 22, but the increased tax burden was seen as falling disproportionately on producers Gazprom Neft and Tatneft. As such, the bill
9 RUSSIA Country Report November 2020 www.intellinews.com
