ExxonMobil Russia lawsuit

This was told by Energy Minister Alexander Novak.

The American company seeks to recoup some of the income tax, which it considers to have overpaid in the past six years. The amount is $ 500 million. ExxonMobil offers as a compromise for Russia to get reimbursed with a half of overpaid amount and subsequently change the calculation of income tax to the rate of 20 percent instead of the current 35 percent.

Russia’s position is that the terms of the PSA cannot change during the period of their validity, said a source of the publication who is close to one of the parties to the negotiations. Moscow is preparing its compromise solution and hopes for an out of court settlement. According to the source, ExxonMobil did not go to court to the bitter end, but on March 28 the statute of limitations would have expired.

Two weeks ago the president of the company, Rex Tillerson went to Moscow to settle the issue, but the agreement was not reached. However, he assured Exxon Mobil is not going to shut its business in Russia. Novak later said that the matter of reducing the income tax is currently under consideration by the government.

Also Read: ExxonMobil will demand from Russia to return the overpaid billions of rubles

“Sakhalin-1” reached the break-even level in 2008, and since 2009 its members paid income tax at a rate of 35 percent. Meanwhile, in Russia, in 2009, income tax was reduced to 20 percent. Newspaper’s sources claim that ExxonMobil has been trying to change the tax rate since 2009. However, the company did not insist much on its position because the situation in the country was calm.

Sanctions, imposed in 2014, drastically changed everything. The main areas of cooperation were frozen by the autumn, and ExxonMobil has estimated its losses in Russia at one billion dollars and a few months ago really pressed on the tax issue.

ExxonMobil is the operator of the project “Sakhalin-1” and owns a 30 percent stake in it. American partners are the Japanese Sodeco (30 percent), the Russian Rosneft (20 percent) and the Indian ONGC (20 percent).

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