Russia's State Treasury to receive $10 bln from Sakhalin PSAs in 2011-2012 - expert
YUZHNO-SAKHALINSK. Sept 29 (Interfax) - The Russia Federation will receive $10 billion in tax revenue, royalties and interest proceeds from projects implemented product sharing agreements (PSA) for Sakhalin-1 and Sakhalin-2, the general director of LLC PSA Expertise, Mikhail Subbotin, said at the conference Oil and Gas Sakhalin 2011.
"Sakhalin has shown that, thanks to PSAs, it is possible to attract enormous private investment. There should be a return this regime," he said, adding that PSAs allow for a balance between state and investor interests.
He added that tax revenue from the Sakhalin-1 and Sakhalin-2 projects in 2010 came to $4 billion and $1.8 billion, respectively.
"BRIC countries [Brazil, Russia, India and China] are actively using product sharing agreements. The PSA in Brazil is regarded as a way of strengthening state regulation of resource usage. Only in Russia is it understood as tax breaks but this really isn't the case," Subbotin said.
Subbotin added the Russia is the sole BRIC country that is seeing the exit of foreign investors despite renewed economic growth in the country following the economic crisis.