Page 53 - RusRPTApr19

and about RUB300bn annually in the past five years.
Russia's oil and gas sectors were a key source of tax revenues in 2017,
according to data from the Federal Tax Service (FNS). The two extractive sectors (that also included the mining industries) provided some 29.2% of all revenue to Russia's consolidated federal budget, which includes both federal and regional budgets. That figure is up over 2016, when it reached 26.5%. Meanwhile, increasing Mineral Extraction Tax (NDPI) returns drove some 40% of revenue growth in 2017 over 2016, or RUB2.8 trillion ($50bn).
6.1.2 Budget dynamics - govt funding plans
Russia's Finance Ministry has swiftly placed $3bn and €0.75bn worth of Eurobonds, maturing in 2035 and yielding 5.1% and 2025/2.375%, respectively – the biggest issue in six years. The issue was organised by VTB Capital and Gazprombank. The sovereign placement tests the investor mood and amid sanction pressure. In November 2018 Russia placed €1bn worth of seven-year bonds, issuing euro-denominated securities with a five-year maturity, despite the military crisis in the Azov Sea.
In March 2018, the Finance Ministry placed $4bn worth of Eurobonds that generated high demand of $7.5bn despite escalating tensions with the West. Out of the placement $1.5bn was a new issue and $2.5bn refinancing of old issues.
The US Dollar placement was the largest since 2013, with 55% of the issue bought by UK investors, 21% by US, 11% by Russian, 8% by European, 4% by Asian and 1% by Swiss investors. 207 bids for the issue peaked at $7.5bn demand. For €0.75bn bond 135 bids worth €3bn were made, with most of the buyers also being from the UK (40%, followed by 18% European, 18% Russian, 17% American, 5% Swiss, 2% Asian).
Russia's Finance Ministry could limit the issue of OFZ federal bonds after overselling two Eurobond issues on favourable market conditions, the Minister Anton Siluanov said on March 22. The ministry tested the investor sentiment amid sanction risks and swiftly placed $3bn and €0.75bn worth of Eurobonds. This made the biggest Russian sovereign US dollar issue in six
53 RUSSIA Country Report April 2019 www.intellinews.com