Novak says one-year extension of refinery upgrade deadlines is being prepared

Russia's government is preparing to extend refinery upgrade deadlines under Energy Ministry agreements by one year. Deputy Prime Minister Alexander Novak said on October 16 that he had already endorsed the relevant document.

Speaking at Russian Energy Week, Novak said the document was being prepared for release. The agreements give refineries access to a reverse excise tax on crude oil when their terms are fulfilled, Interfax reported.

Novak had previously discussed support for plants unable to meet their agreed upgrade schedules. The extension is intended to allow them to complete the required work.

The reverse excise mechanism was introduced in 2018. The Energy Ministry signed 11 refinery modernisation agreements in 2019, two of which were subsequently terminated, the agency recalled.

Those agreements provided for an excise refund if one of two conditions was met: producing class 5 petrol equivalent to at least 10% of refining volumes, or investing at least 60 billion roubles between July 1, 2014, and January 1, 2026.

Separate investment agreements signed in 2021 provide for a 30% supplement to the reverse excise tax, less a regional coefficient, subject to fulfilment of investment commitments.