Russia extends refinery modernization deadline to 2027
The Russian government extended the deadline for oil refinery modernization projects under agreements with the Ministry of Energy to July 1, 2027, from the previous date of July 1, 2026, to support the industry and ensure continued eligibility for tax refunds on crude oil.
Consensus
- The Russian government extended the deadline for refinery modernization projects under agreements with the Ministry ofEnergy to July 1, 2027.
- The extension applies to agreements between the Ministry of Energy and oil refining companies.
- Companies must invest at least 100 billion rubles in modernization to qualify for the extension.
- The extension is intended to support the industry and maintain eligibility for tax refunds on crude oil.
- The tax refund mechanism is known as the 'reverse excise on crude oil'.
- The rules for fuel production were updated to refer to fuel allowed for circulation in Russia instead of specifying Euro-5 standard.
- The extension was formalized through a government decree published on the legal information portal.
- The decree was signed by Prime Minister Mikhail Mishustin.
Points of divergence
- The decree also specifies requirements for high-octane gasoline with an octane number of 92 and above. — vesti
- The threshold for investment eligibility was increased from 60 billion rubles to 100 billion rubles. — interfax
- The reverse excise mechanism was introduced in 2018 and originally launched in 2011. — interfax
- In 2019, 11 modernization agreements were signed, two of which were later terminated. — interfax
- In 2021, investment agreements were signed that included a 30% investment bonus to the reverse excise, minus a regional coefficient. — interfax
- The changes to the tax code were made in July 2025 to preserve the tax refund eligibility despite the deadline shift. — vesti
Coverage (4 sources)
- Government of Russia extended deadlines for NPP modernization to mid-2027 — Вести
- Government postponed NPP modernization deadlines by a year to obtain reverse duty — Интерфакс
- Cabinet delays oil refinery modernization deadlines by a year for companies receiving reverse duty — Интерфакс
- In Russia, deadlines for the modernization of NPPZ have been approved — Москва 24
Key entities
- Russia
- Moscow
- Ministry of Energy
- Alexander Novak
- NPZ
- INTERFAX.RU
- RIA Novosti
- Mikhail Mishustin
- Cabinet of Ministers
- Sergey Fadeichev
- Nizhnekamsk Oil Refinery Photo: TASS/
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