Tax Preferences of Resource Regions and the Risk to the Federal Budget

The purpose of this article is to conduct a comprehensive study of the regional differentiation of taxation of oil producing territories and assess the impact of certain factors on oil and gas revenues of the federal budget. The hypothesis is being tested that with an increase in oil production taxed at zero or at a reduced rate, there is a systematic shortfall in revenue from the oil industry. At the same time, the assumption is being checked that in the short and medium term, changes in the dynamics of oil and gas revenues are influenced more by such market factors as the price of oil and the exchange rate.