Transneft's shortage of funds increases due to tax burden, investment program being adjusted towards only completing old projects

MOSCOW. Oct 16 (Interfax) - Transneft is experiencing a shortage of funds due to an exclusive tax burden and is therefore adjusting its investment program, the company's first vice president, Maxim Grishanin, told reporters.

"We do, of course, have a shortage of funds; it has increased because an exclusive tax burden is pressing on us, and we are forced to adjust capital expenditures because of this. We may not build something that we wanted to build," he said.

"We are now removing investment projects, meaning the creation of something new, and directing funds towards maintaining what already exists, because our main task is the safe, stable, and reliable operation of the system," he said.

Capital expenditures will not be reduced, he said. "This year, capital expenditures will not decrease. We are completing the investment project to expand the South [system of oil product pipelines], which was started earlier; we will not build new ones. Until 2030, the capital expenditure program will grow approximately in line with inflation," he said.

Speaking about a possible increase in the capacity of the Kozmino port, Grishanin said: "Where should we expand it? We fully meet the demand that is declared to us."