Russia – overview
Key drivers in Russia
• Lower oil prices and a concentration of political power affect the investment climate
• The depreciation of Russian rouble decreases the production and capital expenditures in Russia
• Russia is in opposition to the Western world due to the geopolitical development in Ukraine. This is reflected by the economic sanctions, which have been introduced both by the Western world and Russia. This is expected to have negative effects on the Russian economy.
Key drivers in Bashkiria
• Since 1950, Bashkiria has been one of Russia’s most important regions for oil and gas, with good access to equipment, knowledge and specialists
• Bashkiria has Russia’s largest refinery capacity and there is good demand for crude oil
• Bashkiria has a mild climate compared to many other Russian oil-producing regions. This makes exploration and extraction of oil possible year-round.
• The republic has a well-developed infrastructure for processing and transporting crude oil
• Bashkiria is a politically and economically stable part of the Russian Federation
• Petrosibir benefits from reduced oil production tax in Bashkiria and pays 44% lower production tax
Key drivers in Komi
• Komi is a region with well-developed natural resources industry, which comprises oil, gas, coal, bauxit etc. The region is one of the biggest oil and gas producers in the European part of Russia and one of the ten biggest in Russia as a whole. Gazprom, Lukoil and Transneft among others are active in this region.
• Petrosibir’s license areas in Komi are situated near to Ukhta, a city with approximately 100,000 inhabitants and developed infrastructure