GlobalData’s analysis of the fiscal and regulatory changes in the Former Soviet Union highlights several fiscal incentives for the oil and gas industry in the region. Russia, Ukraine and Kazakhstan have all amended their fiscal regimes for 2018 in order to incentivize new investment.

The main change in the Russian regime is an incentive specifically targeted at Rosneft’s ageing Samotlorskoye field that grants an annual tax deduction of RUB35bn ($621m) until 2027. Ukraine has cut gas royalties for new wells by over half and condensate rates will be cut to equal those applicable to crude oil from 2019.

A new incentive regime in Kazakhstan will apply to offshore developments or deep reservoirs as the government hopes to stimulate new activity. The changes also intend to significantly simplify the process of securing new contracts and to allow for larger acreage to be licensed for exploration.

Bid rounds, fiscal regime changes and pending legislation in 2018

Source: GlobalData Upstream Analytics