Alekperov: Lukoil margins to decline by 40-50 bln rubles

Russian oil major Lukoil’s margins may contract by 40–50 billion rubles in 2017 due to a higher taxation of the industry, CEO Vagit Alekperov said in an interview to Rossiya 24 television channel broadcast on Tuesday.

"Our incomes will fall by about 40–50 billion rubles next year. The country’s economy demands additional funds. Our industry is able to provide these funds, but the most important here is for the government to not sever the future that the oil industry has always had,' PRIME cited him as saying.

"The market will be provided with oil. But the annual increase of the excise policy has an impact on our consumers. We need compensation of excises through prices. This year we did not do that, as people were not ready for that due to the devaluation," he added.