Russia must change its tax regime to boost oil industry

Russia is not making the most of its oil assets due to the structure of its tax regime, said Lord Robertson, deputy chairman of the TNK-BP joint oil venture.

TNK-BP and Russia's state-controlled oil companies are being hit by rising costs and higher taxes, he warned.

As 80% of export revenues are taken in taxes when the oil barrel price is above $27, companies are not seeing the benefit of the high oil price, he said. Barrel prices are currently over $90.

'If Russia is going to be able itself, as a country, to extract more from the ground, then it will have to change that fiscal regime,' Lord Robertson said in the FT.

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