Russian oil extraction could fall by a quarter in 10-20 years if tax system stays the same

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Russian oil extraction could fall by a quarter in 10-20 years if tax system stays the same - minister

ST. PETERSBURG. June 21 (Interfax) - Oil extraction in Russia could decline by approximately a quarter within the next 10-20 years if no measures are taken to encourage investment in this sector, Russian Energy Minister Alexander Novak said.

"If we continue working as we work today, using the existing system of taxation, the volume of oil extraction in Russia could drop within the next 10-20 years. Experts have estimated that it could decrease from 500 million tonnes to 370 million tonnes. I mean oil extraction, which could fall by 130 tonnes," he said at Sberbank's business brunch on the sidelines of the St. Petersburg Economic Forum.