Transneft may suspend operation of Belarusian subsidiary due to tax burden
<p> MINSK, Oct 14 - PrimePress. Transneft is not satisfied with the situation around its Belarusian subsidiary Zapad-Transnefteprodukt, the company will conduct an economic audit and may suspend the Belarusian subsidiary because of the high tax burden, Transneft President Nikolay Tokarev said. </p> <p> </p> <p> “We believe that the economic condition of our company has been worsened artificially, unfortunately, by the Belarusian authorities and state agencies. ...The company is operating in the red, and, of course, Transneft cannot be satisfied with this situation,” Prime reports citing Tokarev as saying. </p> <p> </p> <p> In his words, the high tax burden the Belarusian authorities are piling on the enterprises is unfair. “We’ll carry out a very thorough economic audit, although we already know everything,” Tokarev said. </p> <p> </p> <p> “In the near future, in two or three weeks, there will be a big signing of a package of legal bilateral documents. If the situation does not change after that, then we will have to resolve the issue, up to and including suspension of the enterprise. But for now we would not like to,” Tokarev said. </p> <p> </p> <p> As previously reported, presidential ordinance #9 of Jan 10, 2020 imposed an environmental tax on the transit of crude oil and oil products through Belarus since January 1, 2020 at the rate of Br0.35 ($0.13 at the official rate of National Bank of Belarus) per tonne per 100 km. Also, the ordinance raises the income tax from 18% to 50% for transporters of oil and oil products through trunk pipelines in Belarus. The ordinance applies to transit entities registered and operating in Belarus, including Zapad-Transnefteprodukt. </p> <p> </p> <p> Vladimir Leonov, ZapadTransnefteprodukt CEO, said in February 2021 that the increase in the tax burden made the company unprofitable. The tax is levied on the transit of only Russian oil and oil products through Belarus. The company believes that the additional taxes (in particular, the environmental one) are discriminatory and have a fiscal rather than environmental nature. </p> <p> </p> <p> Zapad-Transnefteprodukt is part of Russia’s Transneft. Russia’s Transnefteprodukt is the owner of the property. Zapad-Transnefteprodukt transits Russian light oil products through the southern string of the Druzhba pipeline. End </p> <p> </p>
2021-10-15
Primepress
Transneft may suspend operation of Belarusian subsidiary due to tax burden
MINSK, Oct 14 - PrimePress. Transneft is not satisfied with the situation around its Belarusian subsidiary Zapad-Transnefteprodukt, the company will conduct an economic audit and may suspend the Belarusian subsidiary because of the high tax burden, Transneft President Nikolay Tokarev said.
“We believe that the economic condition of our company has been worsened artificially, unfortunately, by the Belarusian authorities and state agencies. ...The company is operating in the red, and, of course, Transneft cannot be satisfied with this situation,” Prime reports citing Tokarev as saying.
In his words, the high tax burden the Belarusian authorities are piling on the enterprises is unfair. “We’ll carry out a very thorough economic audit, although we already know everything,” Tokarev said.
“In the near future, in two or three weeks, there will be a big signing of a package of legal bilateral documents. If the situation does not change after that, then we will have to resolve the issue, up to and including suspension of the enterprise. But for now we would not like to,” Tokarev said.
As previously reported, presidential ordinance #9 of Jan 10, 2020 imposed an environmental tax on the transit of crude oil and oil products through Belarus since January 1, 2020 at the rate of Br0.35 ($0.13 at the official rate of National Bank of Belarus) per tonne per 100 km. Also, the ordinance raises the income tax from 18% to 50% for transporters of oil and oil products through trunk pipelines in Belarus. The ordinance applies to transit entities registered and operating in Belarus, including Zapad-Transnefteprodukt.
Vladimir Leonov, ZapadTransnefteprodukt CEO, said in February 2021 that the increase in the tax burden made the company unprofitable. The tax is levied on the transit of only Russian oil and oil products through Belarus. The company believes that the additional taxes (in particular, the environmental one) are discriminatory and have a fiscal rather than environmental nature.
Zapad-Transnefteprodukt is part of Russia’s Transneft. Russia’s Transnefteprodukt is the owner of the property. Zapad-Transnefteprodukt transits Russian light oil products through the southern string of the Druzhba pipeline. End