It’s sad to say, but the tax risks I talked about in my last article about Tatneft (OTCPK:OAOFY) have started to materialize. Even though oil prices stood more or less the same, the stock plummeted by 18% in just one month, approaching March levels.
I would be glad to tell you that these risks are overdone, and the stock price looks like a bargain – but not this time. The effect of taxes is quite sensitive, so the decline in the share price looks more or less justified as the company won’t please investors with dividends to the same extent as it did in the past.
How New Taxes Will Affect Tatneft
In mid-September, the Ministry of Finance announced its plan to abolish tax benefits for old oil fields and the production of super-viscous oil. Together with the adjustment of the excess profits tax (EPT) announced in the