Page 12 - FSUOGM Week 46 2022

FSUOGM POLICY FSUOGM

New Ankara demand for tanker insurance

could hinder Russian oil exports

RUSSIA RUSSIA has increased the tax rate for LNG September that the finance ministry was con-
exporters in order to replenish its shrunken sidering a hike in taxes on all energy exports,
Russia is eager to budget funds that have been expended on the targeting an extra RUB1.4 trillion ($50bn) in rev-
replenish its funds by invasion of Ukraine and hit by the impact of enues in 2023. The tax on LNG deliveries alone
extracting more from sanctions and other political fallout from the war. is projected by the ministry to bring in an extra
the already overly-taxed The Russian parliament’s committee on RUB200bn ($3.25bn) in government revenues
oil and gas sector. budget and taxes approved an amendment to the next year.
tax code that will increase the tax rate from 20% Russian oil and gas companies already face
to 34%, with the measure to be applied between one of the largest tax burdens on the industry
2023 and 2025. However, it will only apply to in the world, and so the further increases could
companies that began exporting LNG before the stifle investment in new projects. Those same
end of this year. It will therefore affect the Gaz- companies have been supported by higher inter-
prom-run Sakhalin-2 project in the Far East and national prices over the past year and are enjoy-
the Novatek-led Yamal LNG terminal in the Arc- ing record profits, but have already seen their
tic. Smaller projects such as Gazprom’s Portovaya export volumes dip as a result of sanctions and
LNG plant and Novatek’s Cryogas-Vysotsk plant Western buyers refusing to purchase. The fact
in north-west Russia would also be affected. that the ruble has been kept strong under strict
The approval of the increase comes after government controls, in spite of the crisis, has
Russia’s Kommersant newspaper reported in not helped matters. ™

NEWS IN BRIEF

Russia launches more missiles damaged. An evaluation is ongoing. Azerbaijan's income for 10
In Dnipro, missile strikes are confirmed
targeting gas production and to have injured at least 14 people, with some months from gas exports
reports stating casualties are as high as 23.
Ukrainian enterprises Pivdenmash, an aerospace manufacturer increased by 500%
located in the city, was targeted in the
Russia concentrated attacks on Ukraine’s attack. The export of gas volumes declared at
gas production and enterprises days after In the south of Ukraine, explosions were customs from Azerbaijan in January-
a massive bombardment of its energy recorded in Odessa and Nikopol, damaging October 2022 was 18.37bcm, which is 23.1%
facilities, Ukrainian Pravda reported on infrastructure and leaving thousands of higher than in 10 months of last year, the
November 17. residents without power and water. With State Customs Committee said in a monthly
On the morning of November 17, more the first snowfall settling across many report on 16 November. Gas supplies in
missiles rained down on Ukraine, hitting Ukrainian regions, apprehension is growing the reporting period accounted for 42.21%
civilian infrastructure. Although Russia has that people won’t be able to heat their of Azerbaijan's total exports (in January-
previously focused on destroying Ukraine’s homes, which could lead to excess civilian October 2021 it was 17.52%).
energy sector, Moscow turned its attention deaths in the war-torn country. The cost of declared gas exports from
towards other vital Ukrainian industries, Russia relentlessly launched nearly 100 Azerbaijan amounted to $14.65bn (an
particularly gas. missiles at 11 Ukrainian regions on the increase of 5 times). The State Customs
"Now missiles are flying over Kyiv. Now afternoon of November 15 in its biggest ever Committee still does not publish a
our gas production is being bombed, our attack on Ukraine’s energy sector. 15 energy breakdown by countries to which
enterprises in Dnipro, Pivdenmash are facilities were destroyed and at least two Azerbaijani gas was exported. The State
being bombed," Ukrainian Prime Minister people were killed. Customs Committee maintains statistics
Denys Shmyhal announced at the Kyiv “Russian attacks on civilian energy on exports based on the declaration. The
International Economic Forum. infrastructure in Ukraine are inhumane declaration of the sold gas is provided after
Missiles hit a gas production facility & have left 10 million people without the actual sale, and not at the time of its
in eastern Ukraine belonging to energy,” tweeted European Commissioner pumping through pipelines.
UkrGasVydobuvannya, Ukraine’s largest gas for Energy Kadri Simson in response to the Earlier, Azerbaijan exported 22bcm of
producer. According to Oleksii Chernyshov, attack. “As Russia ramps up its aggression, gas in 2021.
director of Naftogaz, Ukraine’s state-owned the EU ramps up its support.”
oil and gas production company, several
facilities were destroyed and others were

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