Open AccessImpact of changes in economic pressures on the activities of foreign oil and gas companies in Venezuela
Author(s) -
Elmira A. Chadaeva,
Чадаева Эльмира Айдаровна,
Elvis Ojeda Kalluni,
Охеда Кальюни Элвис
Publication year - 2021
Publication title -
vestnik rossijskogo universiteta družby narodov. seriâ èkonomika
Language(s) - English
Resource type - Journals
eISSN - 2408-8986
pISSN - 2313-2329
DOI - 10.22363/2313-2329-2021-29-2-312-323
Subject(s) - revenue , profitability index , business , government (linguistics) , legislation , fossil fuel , tax revenue , petroleum industry , economic policy , foreign direct investment , market economy , state (computer science) , international trade , economics , economy , natural resource economics , finance , public economics , macroeconomics , linguistics , philosophy , algorithm , political science , computer science , law , ecology , paleontology , biology
The article discusses several new laws in the oil and gas sector of Venezuela, which appeared at the beginning of the 21st century. It also presents the tax regimes in this area of the country and the types of tax and economic burdens that apply to these regimes; highlights the main problematic aspects of changes in tax legislation and the consequences on the activities of foreign companies and the development of the oil and gas sector of the country as a result of such changes. It is concluded that the increase in state revenues not solve the problem of attracting investments in the oil and gas sector of the country, and only scare off a large company in the future (Exxon Mobil and ConocoPhillips have left the Venezuelan market), resulting in a fall in production at the country, its government revenues, and then slowing down economic growth in the country. As an alternative approach to improving state regulation and the conduct of the oil business in the country, the options for improving this situation are presented: to increase the share of foreign companies in strategic partnerships; review the tax system for oil companies; allow some programs to be implemented directly by foreign companies; and propose new distribution and profitability schemes that will adapt to the current international hydrocarbon market.