Russias state-owned oil pipeline monopoly Transneftsaid Tuesday that it will likely be forced to cut financial investments into significant jobs after legislators passed a costs doubling the business corporate tax rate.Russias lower-house State Duma passed legislation Tuesday raising Transnefts corporate tax from 20% to 40% in 2025-2030.
The company said the increase would leave it with just a quarter of its earnings for internal use.After a thorough analysis of production, economic and geopolitical aspects, professionals anticipate an inevitable and substantial reduction in Transnefts investment program by 2026, the business said in a statement.It likewise warned of a negative effect on related industries, particularly the fuel and energy sectors.Tuesdays tax walking becomes part of a wider fiscal reform aimed at enhancing state earnings as military costs stays at an all-time high.
Russia plans to improve defense spending to 13.2 trillion rubles ($142 billion) in 2025 from 10.4 trillion rubles predicted for this yearTransneft, which operates 67,000 kilometers (42,000 miles) of pipelines, proposed increasing tariffs through 2030 to ensure steady and trusted operation.Separately, the business announced a 13.8% walking in oil product transport costs starting Dec.
6, lining up with comparable boosts by state-owned Russian Railways.