Prime Minister Dmitry Medvedev has asked the government to analyse the efficiency of the ’60-66’ oil taxation system and respond by February 2013, Interfax reports. He also instructed the government to suggest new gas MET formulae for 2013 and for 2014 and beyond by 1 September 2012 and by 1 March 2013, respectively. They must contain various parameters (including the physical characteristics of the gas) and depend on both macroeconomic conditions and project efficiency.
We reiterate our view that, in general, uncertainty over sector taxation is negative for the market as it boosts volatility. We believe that postponing the decisions to September 2012 and March 2013 would calm the market’s uncertainty in the short term.