Russian depreciation policy: causes and solutions

2017 ◽  
Vol 30 (1) ◽  
pp. 126-135 ◽  
Author(s):  
A. N. Ivanov
Keyword(s):  
Historical Perspective ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Russian Economy ◽  
Fixed Assets ◽  
High Level ◽  
Very High

Today the Russian economy has a very high level of the depreciation of fixed assets, which more and more brightly expressed in the reduction of competitiveness of oil and gas industry. The main reason is an ineffective system of depreciation policy in the country. This article deals with the main «weaknesses» of Russian depreciation policy, their causes in historical perspective, and provides experts’ solutions and the author's vision on the necessary updates.

What Does Rent Give to Federal Budget (on the Russia's Budget Dependence upon "Oil Dollars")

2004 ◽  
pp. 51-69 ◽  
Author(s):  
E. Sharipova ◽  
I. Tcherkashin
Keyword(s):  
Oil And Gas ◽  
Strong Dependence ◽  
Oil Prices ◽  
Federal Budget ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Resource Rent ◽  
Tax Legislation ◽  
Russian Economy ◽  
The Government

Federal tax revenues from the main sectors of the Russian economy after the 1998 crisis are examined in the article. Authors present the structure of revenues from these sectors by main taxes for 1999-2003 and prospects for 2004. Emphasis is given to an increasing dependence of budget on revenues from oil and gas industries. The share of proceeds from these sectors has reached 1/3 of total federal revenues. To explain this fact world oil prices dynamics and changes in tax legislation in Russia are considered. Empirical results show strong dependence of budget revenues on oil prices. The analysis of changes in tax legislation in oil and gas industry shows that the government has managed to redistribute resource rent in favor of the state.

EBITDA and DACF multipliers as an indicator of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 20 (4) ◽  
pp. 718-752
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Oil And Gas Industry ◽  
Financial Economic ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Debt Burden ◽  
Fixed Assets ◽  
Settlement Agreements ◽  
Oil And Gas Companies

Subject. The article addresses the EV/EBITDA and EV/DACF ratios of the twenty five largest public oil and gas corporations from 2008 to 2018. Objectives. The purpose is to identify key trends in the value of EV/EBITDA and EV/DACF ratios of biggest public oil and gas corporations, determine factors resulted in the changes over the studied period, and establish the applicability of these multipliers for assessing the business value within the industry. Methods. I apply methods of comparative and financial-economic analysis, and generalization of consolidated financial statements data. Results. The study revealed that EV/EBITDA and EV/DACF multiples are acceptable for valuing oil and gas companies. The EV level depends on profitability, proved reserves, and a country factor. It is required to adjust EBITDA for information on impairment, revaluation and write-off for assets that are reported separately from depreciation, depletion and amortization costs, as well as for income or expenses arising after the sale of fixed assets and as a result of effective court decisions or settlement agreements. It is advisable to adjust DACF for income, expenses and changes in assets and liabilities, which are caused by events that are unusual for oil and gas companies. Conclusions. The application of EV/EBITDA and EV/DACF multiples requires a detailed analysis and, if necessary, adjustments of their constituent components. However, they are quite relevant in the context of declining profitability and growing debt burden in the stock exchange sector of the global oil and gas industry.

scholarly journals Biofuels as an instrument of Russia hydrocarbons and agrarian exports competitiveness

2020 ◽  
Vol 175 ◽  
pp. 13029
Author(s):  
Denis Ushakov ◽  
Oleg Patlasov
Keyword(s):  
Oil And Gas ◽  
Raw Materials ◽  
Oil And Gas Industry ◽  
Business Value ◽  
Creative Economy ◽  
Gas Industry ◽  
Hydrocarbon Production ◽  
Advantages And Disadvantages ◽  
High Level ◽  
Science Intensity

Paper analyzes the prospects of biofuels second and third generation in the structure of the global energy balance, demonstrates a sharp decline in oil and gas revenues in the Russian budget, describes advantages and disadvantages of biodiesel and bioethanol production. The connection between the growth of Russia’s export potential in terms of hydrocarbon products processing with EU standards implementation has been proved. The problems of the realization of programs on the oxygenate technologies development in the Union State of Russia-Belarus were revealed. The capacity of the market of 3-4 generations fuel with using non-food raw materials and various types of biomass was estimated. Was proved that at a high level of growth in business value and profitability of production there are incentives to organize deep processing in Russia’s hydrocarbon production. It is proved that the oil and gas industry in a creative economy should increase its science intensity and depth of raw materials processing, including ones in related industries.

OVERSEAS RECRUITING IN THE OIL AND GAS INDUSTRY — A CASE STUDY

1985 ◽  
Vol 25 (1) ◽  
pp. 134
Author(s):  
R. Bogan
Keyword(s):  
United Kingdom ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
The United States ◽  
Structured Interview ◽  
Sufficient Information ◽  
Company Performance ◽  
Gas Industry ◽  
The United Kingdom ◽  
High Level

Early in 1982 CSR Limited established an Oil and Gas Division. By 1983 this Division had recruited twenty-six overseas technical personnel mainly from Canada and the United Kingdom. The Company needed to recruit overseas because the skills required were not available in Australia.During 1983 a review of the recruitment and settlement of these personnel and their families was undertaken. The objectives of this review were to:improve the Company performance in the recruitment, induction and settlement of overseas recruits and their families;increase the likely "length of stay" in Australia of overseas recruits and their families;to address specific problems faced by recruits and their families in settlement in Australia.In depth interviews were conducted with twenty-one of the twenty-six recruits and their families using a structured interview format.The analysis of the interviews results revealed that:on average it took longer for those recruited in the United Kingdom to obtain immigration "approvals" and to physically relocate than those recruited in Canada;families with previous experience in relocating adapted and coped better with the physical move and resettlement than families without previous experience.The detailed results showed further that:While there was sufficient information provided about the job and department, there was dissatisfaction with the lack of detailed information about aspects of living in Australia, particularly: taxation; housing; bank mortgage arrangements; cost of living data and medical insurance.There were gaps in the expectations that many- recruits and their families had about living in Australia, such as climate, lifestyle and housing. This was attributed to an "oversell" through glossy brochures and "word pictures".The attention given to staff and their families on arrival was seen as a positive introduction to Australia and CSR's Oil and Gas Division.The provision of initial temporary accommodation in a single apartment complex for all overseas recruits and families in Adelaide assisted greatly in the induction and settlement process. It provided a high level of support especially for wives with young children. The "welcome waggon" group together with the assistance provided by the wives of senior executives were also positive influences in the settlement process.The most positive features seen in the move to Australia were career and lifestyle opportunities. On the other hand loss of disposable income was seen as a significant negative.From the results and analysis a detailed set of recommendations and actions were developed to improve company performance in recruitment and settlement. These recommendations were implementated prior to the 1984 recruiting mission to Canada, the United States and the United Kingdom.The preliminary results from the 1984 recruiting mission have resulted in:a reduction in recruiting lead time;quicker and more informed decision making by candidates and their families in accepting job offers;more professional preparation of both the recruiting teams and the company's agents overseas.

scholarly journals Cost and managerial accounting of joint activities related to the use of fixed assets

2018 ◽  
pp. 84-93
Author(s):  
Zenovii Zadorozhnyi ◽  
Valentyna Orlova ◽  
Sofiia Kafka
Keyword(s):  
Joint Venture ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Separate Entity ◽  
Managerial Accounting ◽  
Joint Operation ◽  
Gas Industry ◽  
Joint Activities ◽  
Fixed Assets ◽  
Joint Operations

The research paper reveals the essence of the concepts of joint activity, joint operation, and joint venture. A set of key features for classification of joint activities is identified and their impact on accounting of joint activities is assessed. The article also reviews the essential elements of accounting of joint activities in the light of International Financial Reporting Standards (IFRS), and characterizes the process of recording accounting entries related to basic operations, which depend on organizational forms of joint activities (a joint venture or a joint operation, with or without a separate entity). The paper provides a detailed description of three options for accounting of joint activities classified as joint operations, namely: joint operations without a separate entity; joint operations with a separate entity but without legal personality; a legal unit. Besides, a number of particular characteristics of measuring financial results from selling and purchasing assets within joint operations are identified. It is pointed out that one of the ways of effective use of fixed assets is promoting the implementation of managerial ac- counting of joint activities and internal reporting procedures of the results achieved. It is suggested that domestic enterprises of oil and gas industry should expand the practice of joint activities in order to effectively use fixed assets for oil and gas extraction and transportation. Before conducting joint activities, it is recommended that oil and gas industry enterprises compile initial calculations of their profitability at the level of managerial accounting. In the study, the following general and specific scientific methods of obtaining knowledge on economic phenomena are used: generalization, grouping and comparison, analysis, synthesis, induction and deduction, etc.

scholarly journals KEY ISSUES OF ACCOUNTING FIXED ASSETS MANAGEMENT OF OIL AND GAS ENTERPRISES: ANALYSIS OF FEATURES, COMPOSITION AND VALUATION

2019 ◽  
pp. 76-87
Author(s):  
Sofia KAFKA
Keyword(s):  
Natural Gas ◽  
Crude Oil ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Fair Value ◽  
Economic Benefits ◽  
Gas Industry ◽  
Gas Drilling ◽  
Fixed Assets ◽  
Key Issues

The article deals with the key issues concerning the system of security of fixed assets at the enterprises of the oil and gas industry. The purpose of the article is to investigate the fixed assets features and composition at the the enterprises of oil and gas industry, to determine the approaches to their assessment at the stage of their receipt by the enterprise. The state, dynamics of value and the degree of depreciation of fixed assets in Ukraine for the year 2017 have been analyzed, their features have been distinguished at the enterprises of different branches of the economy. To ensure the effective operation of the enterprises of the oil and gas industry, significant assets are required, and the results of their activities to a large extent depend on the availability and condition of fixed assets that ensure economic sustainability of economic entities. Oil and gas companies include pipelines and related equipment in fixed assets, oil and gas assets, machinery and equipment, buildings, buffer gas, drilling and reconnaissance equipment and other fixed assets. Among the assets of NJSC "NAFTOGAZ OF UKRAINE" for the year 2017, non-current assets occupied 86% of the total assets of the company, of which 94% were fixed assets, what determines the reliability of their accounting as an important element of effective management of enterprises. The dynamics of value and composition of fixed assets of enterprises of the oil and gas industry of Ukraine for 2016-2017 have been determined according to separate economic segments. The cost of fixed assets of NJSC "NAFTOGAZ OF UKRAINE" as of December 31, 2017 amounted to UAH 491 482 million, respectively, according to economic segments, it is structured in such a way that their largest share is concentrated in the system of transportation and distribution of natural gas - almost 48%, for storage of natural gas - 34%, production and sale of natural gas - 12%, and the rest belongs to the economic activities related to oil: the production of crude oil and gas condensate, transportation of crude oil. The composition of fixed assets of extractive enterprises differs from their composition in refineries. Industrial features of mining industry with significant volumes of work related to the disclosure of layers of minerals are characteristic to chemical production with a significant cost of equipment. The main approaches to the evaluation of fixed assets objects at the stage of their entrance to the enterprise have been investigated. The reliability of the accounting information on fixed assets depends on their assessment. When they are received, they are valued at their original cost, that is, by the amount of cash paid or their equivalents or fair value, another form of indemnity granted to obtain the asset at the time of its acquisition or creation, or, if accepted, the amount that is distributed to that asset in the original recognized in accordance with the specific requirements of other IFRSs. After recognition, the entity should choose either a cost model or a revaluation model in its accounting policies and should apply this policy to the entire group of fixed assets. A cessation of recognition occurs after the release of an object or when it does not expect future economic benefits from its use or disposal. In this case, it is recognized as profit or loss.

OVERVIEW AND REVIEW OF THE COMMONWEALTH ENVIRONMENT PROTECTION AND BIODIVERSITY CONSERVATION ACT 1999

2002 ◽  
Vol 42 (1) ◽  
pp. 669 ◽  
Author(s):  
K. Heiden
Keyword(s):  
Biodiversity Conservation ◽  
Oil And Gas ◽  
Significant Proportion ◽  
Petroleum Industry ◽  
Oil And Gas Industry ◽  
Environment Protection ◽  
Gas Industry ◽  
Strategic Assessment ◽  
Referral Form ◽  
High Level

This paper provides a brief overview of the Environment Protection and Biodiversity Conservation Act 1999 (the Act) and discusses the operational performance of the Act in the first 18 months.The introduction of the Act on 16 July 2000 has created a new environmental assessment and approval regime at the Commonwealth level. Proposals are no longer referred for assessment on the basis of government decisions, but on the basis of the potential for a proposal to impact upon a matter of National Environmental Significance (NES). An analysis of projects that have been referred, assessed and approved provides a useful guide to the types of activities, and the circumstances under which proposals are captured by the Act. This exercise is particularly valuable for the oil and gas sector.With a significant proportion of referrals received being generated by the petroleum industry, many issues with the administration of the Act have been identified. Environment Australia has undertaken a number of initiatives to address these concerns. Examples include involvement in the Strategic Assessment being conducted by the Department of Industry Tourism and Resources (DITR), a review of the Referral form and an undertaking to provide a more industry-specific form, and regular, high level meetings between Environment Australia, the DITR and APPEA to facilitate and streamline the working arrangements between parties.The paper also identifies areas where industry can work closely with the Commonwealth Government in new ways to achieve a balance between environmental protection and the continued development of the oil and gas industry.

On the modern trends in russian oil and gas industry companies’ branding

2021 ◽  
Vol 7 (Extra-B) ◽  
pp. 263-270
Author(s):  
Maksim Maksimov ◽  
Liudmila Chernenkaya ◽  
Yury Korechkov ◽  
Gulnar Zanguttina ◽  
Natalia Prodanova ◽  
...  
Keyword(s):  
Oil And Gas ◽  
Physical Nature ◽  
Oil And Gas Industry ◽  
Competitive Market ◽  
Brand Value ◽  
Gas Industry ◽  
Important Place ◽  
Theoretical Part ◽  
Russian Economy ◽  
A Company

The branding tool has recently become one of the most popular and dynamically developing methods of promoting a company in a competitive market. At the same time, the physical nature of markets can be quite arbitrary. Our article describes a theoretical and practical study of branding in the oil and gas industry in Russia. The oil and gas industry occupies a very important place in the Russian economy. The industry has its own unique ecosystem of businesses, from small independent operators to large oil and gas corporations. Taking this into account, the branding factor is becoming one of the most important arguments in the competition. This aspect determines the relevance of the study. The object of the research is PJSC "Gazprom". The theoretical part of the article is devoted to the study of the concept of brand and branding. While the analytical part describes the characteristics of PJSC "Gazprom" and estimates of the brand value.

The Financial Significance of the Oil and Gas Sector for the Russian Economy

2012 ◽  
pp. 76-91
Author(s):  
L. Eder ◽  
I. Filimonova
Keyword(s):  
Oil And Gas ◽  
Federal Budget ◽  
Oil And Gas Industry ◽  
International Markets ◽  
Balance Of Payments ◽  
Financial Indicators ◽  
Gas Industry ◽  
Russian Economy ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

The article describes the complex of economic and financial indicators reflecting the results of Russia’s oil and gas industry in 2011. Price environment of the major energy resources with regard to their realization at the domestic and international markets is analyzed. Main indicators of economic performance of the oil and gas industry (revenue, profit, profitability) are reviewed with differentiation by companies. The authors consider the tax burden for the oil and gas companies; show their role in forming federal budget revenues. The paper presents the analysis of specialized funds and reserves that are formed at the expense of oil and gas industry sources; examines Russia’s balance of payments as well as revenues generated by oil and gas exports. The stock market structure of Russia and the world is described with consideration of particular oil and gas companies.

TRENDS IN THE DEVELOPMENT OF THE OIL AND GAS MARKET AND THE MAIN MEASURES OF STATE SUPPORT AIMED AT THE IMPLEMENTATION OF ARCTIC OIL AND GAS PROJECTS

2021 ◽  
Vol 5 (11) ◽  
pp. 31-38
Author(s):  
Igor V. Selin ◽  
◽  
Mikhail V. Ulchenko ◽  
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Production ◽  
State Support ◽  
Gas Industry ◽  
Oil Companies ◽  
Oil Reserves ◽  
Exploration Drilling ◽  
Gas Market ◽  
High Level

This article is devoted to the study of the main trends in the development of the oil and gas market, as well as the transfer of state support aimed at the implementation of Arctic oil and gas projects. The analysis showed that 2020 turned out to be extremely difficult for the oil and gas industry as a whole. The volumes of oil and natural gas production and consumption decreased, and due to a reduction in revenue, large domestic companies began to save on exploration drilling. Given the high level of «depletion» of oil reserves in traditional fields, with an increase in demand, in the short term, domestic oil companies will not be able to quickly increase production volumes and take advantage of favorable market conditions.

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