Welt: Russian oil companies are profiting from the crisis

The weakening of the Russian economy, among other things, is related to the drop in oil prices, but Russian oil companies generate the biggest profits in the world market, writes the German newspaper Die Welt.

A picture taken on April 7, 2011 shows Russian LUKOIL ice-resistant fixed platform LSP-1, built at the Astrakhansky Korabel shipyard, intended to drill and operate wells and collect and pre-treat reservoir content at Korchagin's oil field in the Russian sector of the Caspian Sea some 180 km outside Astrakhan. The fields productivity of oil and gas condensate will peak at 2.3 million tonnes oil and 1.2 bcm gas per year. AFP PHOTO / MIKHAIL MORDASOV (Photo credit should read MIKHAIL MORDASOV/AFP/Getty Images)

“Russian oil companies are now in a better condition than their Western competitors. Compared with them, they are more profitable and efficient”, says rating agency Moody’s in the report for the first quarter of 2015. The agency points out that, two months ago Russian companies, in spite of all the difficulties, received a number of benefits and strengthen their financial condition. On one hand, they are faced with a dramatic weakening of the ruble, on the other, a new tax system was a positive impact on the oil sector.

One benefit is related to reduced tax at lower oil prices, which is a way for the state to support the oil companies. “While the oil price of $ 100, export taxes were 69%, at a cost of $ 60 ones have already fallen to 60%. This means that the company lost only 20%. A loss is assumed by the state, “writes the German newspaper.

The other positive thing for them is the fall in the value ruble, which for the companies that are export-oriented issued almost twice as much money in rubles. “Considering that the costs are in rubles, and revenue in dollars, this means that the flow of funds is increasing, and that turnover in rubles, after deducting export duties and taxes, remained at the same level or even slightly higher” pints out Moody’s agency, quoted by the German newspaper.

Source: Russia Beyond The Headlines

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