WASHINGTON (Sputnik) — The release accompanied a report "Integrated Oil Companies — Russia Excise Tax Increase Will Be Offset by Raising Consumer Prices," which Moody’s issued also on Friday.
"Even in the very unlikely event that Russian oil and gas companies are unable to pass the additional tax rise on to retail customers, the negative impact would still be fairly limited," Moody’s Vice President and Senior Credit Officer Denis Perevezentsev said in the release.
Effective on Friday, the excise tax on oil increased by two rubles and the tax on diesel fuel by one ruble.
Moody’s said pre-tax earnings for oil companies Bashneft and Gazprom Neft are expected to take a six percent to seven percent hit if they are not able to pass the tax increase on to consumers.
