Modern problems of the oil refining industry in Russia

These days, the Russian oil refining industry is in a state of "depression". Since the early 2000s the state hasn't been able to resolve the problems of low depth of oil refining, lack of refining capacity and nonconformity of oil products' quality to European standards. Over the past 15 years the state has made alterations to the tax laws twice, aiming at fostering deep oil refining. That was in early 2005 and in October 2011, but the problem remains. Its resolution is supposed to increase the gross domestic product and the amount of the state budget, reduce petrol shortage in certain regions (e.g., in the Far East) and create new working positions. The purpose of the research is to study the economic methods of increasing the depth of oil refining, improving quality of oil products and increasing refining capacity. In order to identify the methods for resolving the current problems, we have evaluated the tax burden on oil companies producing coke and oil products, as well as the influence of excise and custom duties on the volume and structure of the oil refining and export of oil products. According to the research results, some proposals have been made, concerning changing the strategy of tax policy in the oil refining industry, which is supposed to be focused on the implementation of technical regulations on fuel Euro 6.