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. Last Updated: 07/27/2016


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Economist Lauds Yeltsin Oil Decree

While President Boris Yeltsin's decision to scrap the punitive oil tax is designed to pave the way for eventual price rises, the measure could actually help to curb inflation, at least in the short term, and boost investment in the oil sector, a senior government economist said Thursday. Artyom Troitsky, an economic adviser to Deputy Prime Minister Oleg Lobov, said in an interview that Yeltsin's decree amounts to a tax break for oil producers that, were it not for inflation, could even result in a lowering of the price of oil. While Troitsky said the break is anti-inflationary, he said it will not prevent further price hikes because production costs in the oil industry will continue to grow. ""You cannot expect any price stabilization, because the oil producers hit by inflation pay more for equipment and wages"", he said. President Boris Yeltsin signed a decree last week, ending punitive taxes for producers who charged more than 9, 000 rubles ($8. 50) for oil. Most producers paid the tax.
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