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New government structure and FES: Reformatting the state system administrating the sector

New government structure and FES:  Reformatting the state system administrating the sector

Inauguration of Vladimir Putin this May was followed by reformatting of the Russian government and the system of executive power in general.

These changes seem to be cosmetic, as the PM and many ministers preserved their seats. However, HR novelties are quite significant, and they directly concern the oil and gas sector.

The reshuffle has not finished yet – the mop-up and structural changes still continue in some ministries. Yet, main players have already taken their seats, and it is possible to draw the first results of reformatting of the system administrating the oil and gas industry.

The report gives answers to the following questions:

  • Why has Dmitry Medvedev remained in charge of the Cabinet?

    • What is his new ‘contract’ with Vladimir Putin, and what sacrifices the new old PM had to make?
  • Why has Dmitry Kozak become a new supervisor of the fuel and energy sector?

    • What role will he play?
    • What powers he has received from Putin?
  • What does Anton Siluanov’s new status of the first deputy PM mean for the sector?

    • How has it changed the taxation discourse?
  • New HR and organizational decisions in the energy ministry after formation of the new Cabinet

    • What does the departure of deputy energy minister Kirill Molodtsov to the Russian presidential executive office mean?
    • Will he manage to restart the work of the presidential commission for FES strategic development and environmental security?
  • What is behind the appointment of Dmitry Kobylkin as minister of natural resources and environment?

    • What conclusions can be made following the first HR and structural decisions of the new minister?
  • How has the Arctic supervision system changed with Yury Trutnev becoming responsible for it, and with Yevgeny Ditrikh becoming transportation minister?

    • How can the latest personnel changes in the ministry be interpreted?
  • Companies that have won, and companies that have lost as a result of new appointments in the government

  • New lines of administrative contradictions in the new system managing the sector

    • For how long will the new Cabinet stay?

Contents of the report: 

Introduction 3
Main staff features of new government. Why Dmitry Medvedev? 6
Dmitry Kozak as new supervisor of the energy sector 11
Anton Siluanov as a key representative of the financial and macroeconomic bloc. The oil and gas sector and new fiscal pressure 13
Situation in the energy ministry: tactical win and strategic loss of Novak 18
Privatization of natural resources ministry 23
Change of supervisor of climate policy 32
Struggle for Arctic supervision and new transportation minister 34
New government in the context of Russia-West relations 38
Medium-term forecast 40
Annex 1. Structure of the energy ministry 42
Annex 2. Structure of the ministry of natural resources 43
Date of release: September 10, 2018

 


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Analytical series “The Fuel and Energy Complex of Russia”:

Arctic: Soviet-type Gigantomania or Breakthrough Project?
State regulation of the oil and gas sector in 2018, prospects for 2019
Gazprom on Path to New Reality
Looking for Best Tax Treatment of Oil and Gas: Fiscal Experiments Continued
The subject of taxation became the absolute hit of 2018. The government once again decided to rewrite the rules of the game. President Putin’s new inauguration decree served as the main pretext. It turned out that about 8 trillion roubles extra was necessary for the new national projects announced. The Cabinet did not take long to decide where the funds should be taken. The result was acceleration of the so-called tax manoeuvre started as far back as 1 January 2015. It suggested shifting the tax burden to the wellhead: the effect on the state budget of gradual abandonment of the export duty will be more than compensated for by quicker growth in mineral resources extraction tax (MRET). The laws on tax reform have already gone through the parliament and will take effect as of next year. This means nothing good for companies.
Results of Pivot to the East in Oil and Gas Sector

All reports for: 2015 , 14 , 13 , 12 , 11 , 10 , 09 , 08 , 07

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