The products of our fields are all sold into the domestic market in Russia and in export markets in neighbouring countries. As our fields are located in a region with a substantial local demand, the prices we achieve are advantageous relative to more remote producing regions such as Siberia.
- The prices of oil and condensate in the domestic market in Russia have historically reflected the export price of crude oil, adjusted for the significant export taxes charged by the Russian government in accordance with an oil price based formula. Regional prices also reflect the cost of transportation between the point of production and the point of sale.
- Since 1 January 2015 the Russian government reduced the rate of export taxes on oil and significantly increased the rates of taxes charged on production of oil, gas and condensate.
- Gas prices in Russia have increased significantly in recent years in accordance with Russian government policy of liberalising the domestic gas market. For information on Gazprom Mezhregiongaz please click here.