Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Kadyrov Lashes Out At Rosneft

Chechen leader Ramzan Kadyrov has criticized Russian oil giant Rosneft for not paying enough taxes to Chechnya, leaving the republic no option but to borrow money to plug budget holes, Vedomosti reported Tuesday.

The government of Chechnya controls 49 percent of Grozneftegaz, while 51 percent belongs to Rosneft, who also holds the oil extraction license.

Musa Eskerkhanov, Grozneftegaz’s CEO, met with Kadyrov to inform him of a 70 to 80 percent reduction in taxes collected in 2012-13 as a result of the Consolidated Group of Taxpayers law, which came into effect Jan. 1, 2012.

“As local Rosneft operators, our profit cannot exceed the cost of extracting oil, and the rest belongs to the license owner, i.e. Rosneft,” Eskerkhanov said.

Kadyrov’s government repeatedly asked the federal government to hand Grozneftegaz’s control packet over to Chechnya, but Moscow refused, Vedomosti reported.

Grozny applied for an oil extraction license a few years ago, but the request was denied, with Rosneft voicing concerns that this would put control over the company’s current and future oil production in Chechnya in jeopardy.

Of the 25 billion rubles ($795 million) that Rosneft earns annually from its operation in Chechnya, Grozny receives 2.5 billion rubles in taxes, Vedomosti cited Kadyrov as saying.

Related articles:

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more