TAX INCENTIVES AS A TOOL TO STIMULATE PRODUCTION OF HARD-TO-RECOVER OIL RESERVES IN RUSSIA

The article analyzes the current taxation system in the oil and gas sector of Russia, with a focus on the challenges and prospects of transitioning to the development of hard-to-recover oil reserves (HTO). The study highlights the limitations of the existing Mineral Extraction Tax (MET) and the Tax on Additional Profit (TAP), which fail to effectively stimulate investment in HTO projects. Drawing on the U.S. experience in supporting shale oil and gas production through tax incentives, the authors propose a set of measures aimed at modernizing the Russian tax policy. These include differentiated tax regimes based on geological and regional factors, linking tax benefits to technological investments, introducing flexible tax scales, and supporting small and medium-sized oil and gas companies. The paper emphasizes that a balanced tax policy is not only essential for maintaining the competitiveness of the oil and gas industry but also for ensuring long-term economic stability, regional development, and technological sovereignty of Russia.