Top 10 Legal Developments of 2017 in Regulation of Russian Subsoil Use
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- This update presents the most significant recent changes in the regulation of Russian subsoil use.
- The legislative changes of 2017 expanded restrictions on foreign participation in in the most important spheres related to the extraction of minerals. New rules restrict the use of offshore companies to invest in subsoil sites of federal significance and the use of foreign ships in the oil and gas sector. In addition, state-owned producers will benefit from new tax incentives and expanded extraction rights.
- The most relevant regulatory trends include changes to the taxation of hydrocarbon production; new rules to incentive geological survey (including private financing); changes intended to increase the effectiveness of subsoil tenders/auctions; and enhancement of the legal framework for joint field development.